NEW DELHI: The Nifty50 continued its march into fourth straight day on Wednesday.
In process, it formed a High Wave candle on weekly chart, suggesting that intraday decline got bought into.While buying support is visible at lows, traders look indecisive at higher levels, as they once again failed to capitalise on opening gains.
Strength indicator RSI and momentum indicator Stochastic are in bullish mode, which suggests an upward bias.
A breakout above 10,880-10,900 range could give index a firm direction while support is placed at 10,800 level.On daily chart, Nifty is moving within a Symmetrical Triangle formation and is currently hovering around breakout level at 10,880.
Any decisive move and close above this level will indicate an upward breakout and index may scale 10,940-11,000 zone in near term.
On downside, 10,800-10,780 zone will act as an intraday support, said Rajesh Palviya of Axis Securities.For day, index rose 53 points, or 0.49 per cent, to 10,855.
The closing level was lower than opening level, resulting in a bearish candle for day.
The index has been is facing a hurdle at its immediate supply trend line that connects swing highs of 10,985, 10,923 and 10,880, said Chandan Taparia of Motilal Oswal Securities.Nifty is placed on edge of upside breakout of triangle, said Nagaraj Shetti of HDFC Securities, who expects a sustainable move above 10,900 to trigger a strong upside in market.
Taparia says a break above 10,985 can trigger further upside.On a broader basis, Nifty is still trading inside a contracting structure and traders are advised to remain cautious and wait for a proper breakout above 10,923 level on a closing basis, said Mazhar Mohammad of Chartviewindia.in.