NEW DELHI; The Nifty50 failed to capitalise on a firm start on Monday and barely managed to close higher for fourth straight day.
The index formed a small bearish candle on daily chart, even as it formed higher highs and higher lows for third straight session.Near-term oscillators are sending out mixed signals.
Only a strong rally above 10,920 can lift index towards 10,950-11,100 zone, as there isnt enough strength visible on charts so far.For day, index edged 2.65 points, or 0.02 per cent, higher to 10,862.
During day, Nifty breached above 78.6 per cent retracement level of 10,889 shortly before closing below it.
The index could correct in near term, if it does not break above 10,985, said Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan.Daily strength indicator RSI continued to remain flat in overbought zone, indicating absence of strength.
But momentum oscillator Stochastic continued to scale up, signalling that upside momentum may continue in near term, said Rajesh Palviya, Head of Technical Derivatives Analyst at Axis Securities.Subash Gangadharan of HDFC Securities felt index has taken a breather after last weeks rally.
Further upsides are likely once immediate resistance of 10,923 is taken out, he said, adding that a crucial support exists at 10,853 level.