INSUBCONTINENT EXCLUSIVE:
NEW DELHI: The Nifty50 faced selling pressure above the 11,000 level on Monday, but rebounded from a critical support level to suggest that
the bulls were in no mood to give in.
The index made a formation similar to the 'Bearish Belt Hold' pattern on the daily chart.
During the
session, the index filled the gap area between 10,976 and 10,999 levels
Nevertheless, it found support near the May high of 10,929, which acted as a support as per the principles of role reversal, said Gaurav
Ratnaparkhi, Senior Technical Analyst, Sharekhan.
The 10,850-10,800 range is a crucial support for the index now and further upside is
possible as long as the bulls manage to hold on to the support zone, the expert said.
For the day, the index fell 82.05 points, or 0.74 per
cent, to close at 10,936.
Should the Nifty50 sustain below 10,930, it may seen profit booking and move towards the next support level at
10,879, which is the 38.2 per cent Fibonacci retracement of the recent rally from 10,557 to 11,078 levels, said Rajesh Palviya of Axis
support to watch out for," the expert said
Mazhar Mohammad of Chartviewindia.in believes the bulls may defend the breakout gap formed on July 10.
A failure to do so may result in the
expansion of the downswing, initially towards its 50-day moving average, whose value is present around the 10,738 level
For the time being, traders should adopt a neutral stance, he said
Nagaraj Shetti of HDFC Securities said Nifty formed a long-body negative candle on Monday, which signalled the beginning of a short-term
The worrying factor could be a weak market breadth at high levels, he said
The bears are putting pressure at higher levels, said Chandan Taparia of Motilal Oswal Securities
Nifty has to hold and sustain above 10,929 to extend its gains towards 11,080, he said.
