NEW DELHI: Nifty50 reclaimed the 10,550-mark in a lacklustre trade on Thursday.
The index moved in a small 26-point range for the session to end up forming a Doji Cross candle on the daily chart.The index may continue to consolidate around the prevailing levels and face tough resistance at 10,580 in the extreme short term.For the day, Nifty50 rose 39.10 points, or 0.37 per cent, to close at 10,565.30.This was probably the thinnest single day range in last many months, said Sameet Chavan of Angel Broking."We continue to expect Nifty making an effort to re-enter the strong resistance zone of 10,580-10,640.
On the lower side, 10,546 followed by 10,495 would be seen as a crucial support.
Only a sustainable move below this level may halt the rally.
Till then, the index may continue gyrating within a range of 10,495-10,640," Chavan said.The formation on the daily chart was similar to Doji Cross.
"It also resembled Harami Cross - a two candlestick pattern, which requires the first day to be a bullish candle body.
But in this case the Wednesdays candle was bearish one and, hence, this potential bearish reversal formation can be ruled out and traders can take a sigh of relief as long as Nifty50 sustains above the Wednesdays low of 10,509," said Mazhar Mohammad of Chartviewindia.in.The momentum indicator Stochastic has turned negative from overbought zone indicating a slowdown in the upside momentum, said Rajesh Palviya, Head Technical Derivatives Analyst, Axis Securities.