INSUBCONTINENT EXCLUSIVE:
NEW DELHI: The Nifty50 rebounded from day's low on Friday to settle around the day's high
The index formed a 'Bullish Engulfing' pattern on the daily chart, but an indecisive pattern on the weekly chart suggested that some more
upside is needed to instil confidence before the bulls emerge on top.
The index revisited its entire trading range of the week in just one
session, led by strong momentum in last hour of trade, said Chandan Taparia of Motilal Oswal Securities.
"On the weekly scale, it formed a
Doji candle similar to Bullish Pin Bar, as it closed near its weekly open with a long lower shadow
The pattern suggests that decline is again being bought into
Nifty now has to hold above 10,770 and 10,835 levels to extend the upmove towards 10,888 and 10,929 levels," he said.
For the day, the index
rose 80.75 points, or 0.75 per cent, to close at 10,821
Nifty is moving sideways within a high low range between 10,830 and 10,700 levels.
"We observe formation of an alternative candle of bull
This indicates a choppy trend in the market
As per weekly timeframe, the Nifty has formed a small body candle with a long lower shadow, similar to the Hanging Man pattern
This needs to be confirmed with a negative closing before calling it a trend reversal," said Nagaraj Shetti of HDFC Securities.
The index
has reached a zone where multiple resistance levels point to a downsloping trendline
A bearish gap zone and the previous swing high are placed around the 10,840 mark, said Mazhar Mohammad of Chartviewindia.in.
"A sustainable
close above 10,850 shall instil more confidence among the bulls, which should then result in clearing of all the hurdles on its way to a new
So far, the bulls and bears are displaying strength on alternate days
Hence, a follow-up buying on Monday with a decisive breakout above 10,850 shall turn the trend in favour of the bulls," Mohammad said.
It
looks prudent for traders to either buy on a breakout above 10,850 or on decline close to 10,740 level with a stop loss below 10,700, the
