Late buying aided NSE benchmark Nifty50 form a Hammer-like candle on the daily chart on Thursday.
Supports shifted lower, as suggested by the formation of lower highs and lows for the fourth straight session.
Analysts believe the market may find temporary support at current levels.Although Nifty settled the expiry day session on a negative note, it showed some signs that a temporary bottom maybe in place.
The index recouped over 100-points from the low point before ending 45.20 points, or 0.39 per cent, down at 11,633.
The 50-share index shuttled between an intraday high and low of 11,663 and 11,536 earlier in the day.
The index had opened the day at 11,633 against the previous close of 11,678.Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst, Gemstone Equity Research and Advisory said, Nifty formed a Hammer on candles.
The occurrence of such a candle near the pattern support area increases the chances of the market finding a temporary support at current levels.The weekly chart also showed that the index reached the weekly lower Bollinger Band (11,552) that also offered support.
Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas said, The overall market structure shows the index is not out of the woods yet.
Though a minor degree bounce is plausible, that should be used as a selling opportunity.Mazhar Mohammad, Chief Strategist for Technical Research - Trading Advisory, Chartviewindia, believes as long as Nifty sustains above the 11,500 level, some sideways consolidation with a positive bias can be expected as they are already in oversold levels with a vertical fall from the high of 12,152 in last five sessions.