NEW DELHI: Nifty50 climbed for third straight session to reclaim 10,800 mark on Tuesday.
The index ended up forming an indecisive Doji candle on daily chart.A lower high-lower low candle over previous days candle signalled a negative bias.
That said, index managed to end above its 200-day moving average of 10,792.
While Nifty is expected to stay range-bound for time being, a breakout in Bank Nifty could help it maintain a positive bias.A small-bodied positive candle is indicating a sideways rangebound movement.
Nifty is moving in a triangle pattern and is currently placed near lower end of triangle at 10,700 (lower apex point of triangle).
Niftys short-term trend is rangebound and it is likely to continue in short term, said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.During session, index tested its 50-day exponential moving average, before seeing a smart recovery.
The index come off a bit in end and eventually rose 30.35 points, or 0.28 per cent, to close at 10,802.For any possible upside towards 10,850-10,880, index needs to sustain above 10,820.
Any violation of 10,750 level will cause weakness and Nifty may drift towards 10,700-10,660 range, said Rajesh Palviya of Axis Securities.Chandan Taparia of Motilal Oswal Securities believes Nifty can climb till 10,850 and later 10,929 levels if it holds above 10,750-10,777 range.The big picture still remains that of a sideways trading zone unless Nifty clears 10,923 level, which can pave way for a bigger breakout going forward, said Mazhar Mohammad ofChartviewindia.in.A clean breakout in Bank Nifty with a close above its short-term critical hurdle of 27,430 appears to have cleared decks for Nifty50.
Traders are advised to remain positively biased as long as Nifty50 trades above 10,700 on a closing basis, he said.