NEW DELHI: The Nifty50 index on Wednesday took a breather, as it formed an indecisive Doji candle on daily chart, despite witnessing strong gains in previous session.That said, positive momentum is likely to stay, as index has managed to hold onto its 100-DMA placed at 10,870 level.
Besides, index made higher high higher low for session.A sustained trade above 100-DMA could resume uptrend, pushing index towards 10,985.
A trade below 10,870 will drag it lower to level of 10,730, said Aditya Agarwala, Senior Manager, Technical Analysis at YES Securities.For day, index rose 3.50 points, or 0.03 per cent, to 10,890.30.No one would have expected such a lethargic day of trade, especially after yesterdays massive jump.
The chart structure remains same and hence, we continue with our optimistic stance, Sameet Chavan of Angel Broking.The Doji pattern signalled a breather before next rally, said Rajesh Palviya of Axis Securities.
The daily strength indicator RSI and momentum indicator Stochastic both are in a bullish mode, which are supporting upside bias, he said.The index stayed above its falling supply trend line by connecting swing highs of 10,985, 10,923 and 10,870 levels.
It also respected its 50-DEMA.Traders can consider any weakness, owing to profit booking, as an opportunity to create fresh long positions as long as long as index sustains above 10,777, said Mazhar Mohammad of Chartviewindia.in.
The expert sees initial target for Nifty as 10,985.