INSUBCONTINENT EXCLUSIVE:
NEW DELHI: The Nifty50 struggled around the 10,430 level on Wednesday and ended up forming a Hanging Man pattern on the daily chart
This signalled loss of positive momentum in the market.
Levels around the 10,430-10,440 range is where 50-day moving average (DMA) and
100-DMA for the index lie
A decisive breakout above this range is a must for Nifty to continue the recent gains that extended to the fifth session on Wednesday.
While
the index moved in a narrow 73-point range for the day, it saw intra-day recovery towards close
The 50-pack index closed the day at 10,417, up 14.90 points, or 0.14 per cent.
The price pattern reflected absence of buying at higher
levels, and suggested that any decline is being bought into, said Chandan Taparia of Motilal Oswal Securities
It suggests a positive to rangebound move in the market, he said.
The index extended the upmove towards the recent swing high of 10,478
Sameet Chavan of Angel Broking.
Any decisive breakout above the supply zone at 10,430-10,440 will give further strength to Nifty to move
traders to keep a watch on the 10,350 level, as any break below it will signal weakness.
Usually a Hanging Man formation is visible around
the short-term turning points, suggesting exhaustion in the ongoing upmove, said Mazhar Mohammad of Chartviewindia
