INSUBCONTINENT EXCLUSIVE:
NEW DELHI: The Nifty50 ended August FO series flat at 11,676 on Thursday
This was the second day of lower-high lower-low formations for the index, warranting caution
A fall below the 11,590-20 range on a closing basis may confirm a short-term trend reversal, analysts said.
For the day, the index fell
15.10 points, or 0.13 per cent, for the day
For the August FO series, it was up 4.60 per cent.
A trade below 11,590 will trigger a breakdown from a rising channel, which can drag Nifty
lower to 11,530 and 11,500 levels, said Aditya Agarwala of YES Securities
He believes a trade above 11,700 can help Nifty50 resume the uptrend towards the 11,760-11,850, range
The index formed a Hammer candle on the daily scale, which indicated that the decline got bought into
But the immediate hurdle of 11,777 is restricting its momentum, said Chandan Taparia of Motilal Oswal Securities.
A decisive hold above
11,666 can extend the index towards 11,777 while a drift below 11,620 can change its short-term price behaviour, he said.
The underlying
short-term trend of Nifty is slightly weak, but the weakness seen in the last couple of sessions weakness has not damaged the uptrend status
of the market so far, said Nagaraj Shetti of HDFC Securities.
Sell signals have been generated on multiple technical parameters and should
the index close below 11,615 on Friday, a short-term trend reversal will get confirmed, said Mazhar Mohammad of Chartviewindia.in.
Traders
will be better off by maintaining neutral stance till some initial signs of strength get visible, he said.
