NEW DELHI: The Nifty50 on Tuesday snapped a five-session winning streak and ended up forming a Hanging Man candle on daily chart, suggesting bulls might have started losing control.The indexs structure, however, suggested that it still has potential to stretch towards 11,000-11,070 range to complete its last leg of Ending Diagonal pattern.But such a move is unlikely to be a smooth one, said Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan.The recent swing high of 10,985 is seen as key resistance while 10,850-10,800 would offer ample support, said analysts.For day, index fell 39 points, or 0.36 per cent, to 10,922.75.Nifty has been struggling to surpass 10,985 level for last nine weeks.
The absence of follow-up buying has taken index to lower zones, said Chandan Taparia of Motilal Oswal Securities.A negative candle with lower shadow is signaling a sideways rangebound movement and suggests that Monday's upside breakout of small range lacked strength.
The short-term trend of Nifty is rangebound.
The 10,850 level is going to be an important support to be watched for near term, said Nagaraj Shetti of HDFC Securities.Mazhar Mohammad of Chartviewindia.in advised traders to avoid long positions, unless Nifty50 registers a decisive breakout, riding on favourable advance-decline ratio.Supports can be expected on dips around 10,825 level, and as long as this is held, market may remain rangebound in 10,985-10,825 range, Mohammad said.