NEW DELHI: The Nifty50 on Friday climbed half-a-per cent to reclaim the 11,000 level.
The index formed a small bullish candle on the daily chart and a Doji on the weekly charts, which generally signals indecisiveness among traders.
The index needs a decisive break above the 11,050-11,080 range for sustained rise.
Traders are advised to maintain stop losses for all long positions below 10,900 on a closing basis, says Mazhar Mohammad, Chief Strategist, chartviewindia.in.For the day, the index added 53.10 points, or 0.48 per cent, to 11,010.
The detailed structure shows the index has formed a flat correction over the past few sessions.
Alternately, the structure can take the form of a triangular pattern, if the consolidation continues.
Nevertheless, the outlook continues to be positive from a short-term perspective with the 11,078-11,100 zone as a key target area.
On the downside, the 10,935-10,925 zone, which is the lower end of the consolidation range, shall be the crucial support zone to watch out for, said Gaurav Ratnaparkhi of Sharekhan.Chandan Taparia of Motilal Oswal Securities said the Doji on the weekly chart was a Long-Legged Doji, which indicates that declines are being bought into.The Nifty50 has to hold above 10,950 to extend its gains towards 11,080 and then 11,171 levels.
Supports are seen at 10,929 and 10,925 levels, he said.
Nagaraj Shetti of HDFC Securities believes the weekly pattern suggests a temporary halt in the upside momentum is likely.
A minor weakness or a consolidation movement is expected next week, he said.