NEW DLEHI: The Nifty50 formed a Hammer candle on daily chart on Friday, as index recouped its losses to end on a high note in an otherwise poor week for equities.Analysts said index might turn sideways with a positive bias for a couple of days before seeing any directional move.On weekly charts, Nifty formed a Bearish Engulfing pattern, said Mazhar Mohammad of Chartviewindia.in, who feels traders should adopt a neutral stance for now.Since December 19 high of 10,985, Nifty50 appears to be forming a contracting structure with lower tops and lower lows.
In next couple of sessions, we can expect it to see a sideways move as long as index sustains above 10,628.
Upside, if any, will be capped at 10,700, expert said.For day, index rose 55.10 points, or 0.52 per cent, to 10,727.Nagaraj Shetti of HDFC Securities said Nifty has seen an alternative candle formation of red and green in last few weeks.
He sees possibility of a small upside bounce during early to mid-part of next week, but says 108,80-900 range will offer a strong resistance in near term.On daily chart, index formed lower highs and lows for third session.
Nifty can negate same by holding above 107,50-10,777 range and witness a short-term bounce towards 10,850, while a hold below same level could drag it towards its next crucial support in 10,650-10,600 zone, said Chandan Taparia of Motilal Oswal Securities.