Tech View: Nifty50 forms small bearish candle, but momentum stays strong

NEW DELHI: Nifty50 on Thursday snapped a three-day winning run and ended up forming a small bearish candle on the daily chart. The day's range remained narrow as was seen in the past couple of sessions but analysts see no signs of change in the positive momentum.

The sustainability of the current zone could be perceived as a constructive setup, said Osho Krishan of Angel One.

"The technical setup construes the formation of higher high-bottom, with the immediate support of the recent unfilled gap coinciding with 61.80 per cent of the retracement of the fall placed at the 17,327 level, which is expected to act as a firm demand zone. On the contrary, 17,650 is the immediate hurdle, followed by the previous swing low of 17,800-odd level," Krishan said.


For the day, the index closed at 17,464.75, down 33.50 points or 0.19 per cent.

Mazhar Mohammad of Chartviewindia.in believes that the bulls need to get past 17,560 for any upmove.

"In that scenario, eventually, a higher target of 17,900 can be witnessed. On the downside, a close below 17,387 can damage the current positive momentum, which may eventually weaken the Nifty50 towards 17,00 levels. For time being traders are advised to remain neutral unless a strong move is visible in the upward direction which can be a buying opportunity for index traders.

Nagaraj Shetti, Technical Research Analyst at HDFC Securities said there was a lack of sharp selling from the near crucial overhead resistance of 17,500."This could be considered as a positive for the market as this consolidation movement could eventually result in an upside breakout of the hurdle," Shetti said.