market today: Tech view: Nifty forms bearish candle on daily chart, Spinning Top on weekly chart

Pick Your Language

Spread the love

NEW DELHI: The Nifty50 snapped a five-day winning streak on Friday, but managed to settle the week above the 11,400 mar k. The index formed a small bearish candle, similar to the Bearish Belt Hold pattern on the daily chart.

On the weekly scale, the index continued to form higher high and higher low for the fifth session, but formed an indecisive Spinning Top candle.

Chandan Taparia of Motilal Oswal Securities said a Bearish Belt Hold candle on the daily chart and a Spinning Top on a weekly scale implied followup buying was missing at higher levels.

“The index needs to hold above 11,435 to extend its move towards 11,500 level. A hold below 11,350 could change the immediate trend for a decline towards the 11,300-11,250 zone,” he said.

For the day, the index fell 41.20 points, or 0.36 per cent, to close at 11,429. Friday’s modest decline on Nifty has not damaged the underlying uptrend, said Nagaraj Shetti of HDFC Securities.

“As per weekly timeframe, the Nifty50 continued with the upside momentum within a narrow high-low range. A small-body positive candle has been formed, with an upper shadow, which indicates a drop in participation in the market. Normally, such patterns more often lead to a minor downward correction, before showing further upward move. But this pattern needs to be confirmed, before calling as a top reversal,” Shetti said.

Mazhar Mohammad of said a critical support is placed at 11,373, a breach of which shall not only confirm the short-term top around the 11,500 level, but has the potential to extend this downswing towards the 11,230 level.

“Unless the Nifty50 registers a fresh breakout above 11,500, the index shall not resume a fresh leg of upswing,” he said.

Source link

    Newsfeed - Latest News Update Get Top Stories And Updates On WhatsApp
    *Only the best or breaking news stories of the day and it’s aim is to keep you update the most convenient way.