INSUBCONTINENT EXCLUSIVE:
NEW DELHI: The Nifty50 on Wednesday saw selling pressure at immediate resistance level of 11,080, and eventually closed below the 11,000
In the process, the index formed a large bearish candle, resembling Dark Cloud Cover on the daily chart
The index may be bracing for 'Double Top' formation, which does not auger well for the bulls
price movement signified presence of a key hurdle at 11,080 and 11,000 levels.
For the day, the index fell 27.60 points, or 0.25 per cent,
This was the sixth session when the Nifty50 consolidated in the 10,920-11,080 range
A breakout on either side of the range will give direction to the market, said Rajesh Palviya of Axis Securities.
The index is well placed
above its 20-day and 50-day SMAs, but RSI has turned flat, indicating lack of strength
Momentum indicator Stochastic remains in bearish mode.
"The index has formed a Dark Cloud Cover pattern as the bears are pushing it from the
If the index holds above 10,950, a positive-to-rangebound move could be seen towards 11,080 level
Chandan Taparia of Motilal Oswal Securities
Mazhar Mohammad said the Nifty50 seemed to be carving out a fresh trading range between 11,078 and 10,925 levels in last five sessions and,
therefore, it would be critical for the index to hold above the 10,925 level, failing which it may see fresh selling, with targets close to
10,760 level.
"For the time being, the upsides for the index remain capped around the 11,078 level
