NEW DELHI: Nifty50 snapped a three-day losing streak on Friday to close almost at its 200-day moving average.
But analysts say upside, if any, will be limited.The bears lacked enough ammunition to do significant damage, which suggests the market was in for a minor consolidation, said Mazhar Mohammad of Chartviewindia.in.The index should register a short-term breakout sooner than later, which should be confirmed on any close above 10,930.
On the downside, the 10,729 level can be considered a critical support, a breach of which may temporarily damage the bullish outlook, Mohammad said.
Aditya Agarwala of YES Securities said a breach of the 10,890 level could take the index beyond the 10,940 mark.
He expects profit booking to trigger should the index fall below 107,60.
The RSI turned upward from the 50 mark, signalling bullishness in the coming sessions, he said.For the day, the index rose 71 points, or 0.66 per cent, to close at 10,863.
It still lacks directional clarity on a near-term basis as it gyrates between 10,680 and 10,915 levels, said Arun Kumar, Market Strategist, Reliance SecuritiesThe bias for the market as per daily charts remains positive, said Nagaraj Shetti of HDFC Securities.As per weekly timeframe chart, Nifty has formed a small-body positive candle with high upper and lower shadows.
This weekly candle pattern is signalling volatility, he said.