NEW DELHI: The Nifty50 traded in a narrow range on Friday and could not take out the 10,600 level by the days close.
The index formed a Hammer candle on the daily chart, suggesting buying at lower level.Follow-up action was missing on either side, as the index consolidated in the 10,450-10,650 range for the entire week, said Chandan Taparia of Motilal Oswal Securities.The index needs to hold above 10,500 level to extend its upmove towards the 10,650 -10,750 range.
Multiple supports are seen around 10,450 and 10,380 levels," Taparia said.For the day, Nifty fell 13.20 points, or 0.12 per cent, to 10,585.The index has formed a small positive candle on the weekly scale after a sharp upmove in the previous week, signalling a breather-type pattern.
Normally, a breather pattern signals a temporary halt to the upside momentum, but is considered a continuation pattern of an uptrend, said Nagaraj Shetti, Technical Research Analyst at HDFC Securities."Hence, Niftys near-term trend is range-bound and eventually, this action could result in an upside breakout in the coming weeks, Shetti said.Mazhar Mohammad of Chartviewindia.in advised traders to avoid long side bets unless Nifty registers a breakout on the upside with a strong close above 10,620 level."Essentially, as it is looking like a directionless market, traders should focus on stock-specific opportunities in both directions for time being till the index registers a breakout on either side, he said.