NEW DELHI: Nifty50 on Monday saw a gap-down start and it ended the day around the same level, thus forming a Doji candle on the daily chart. Analysts said the index needs to sustain above 15,630-600 zone for any recovery to take place. They believe the index may enter a sideways trade, before recovering to the 15,900 level.
Gaurav Ratnaparkhi of Sharekhan said the 50-pack index found support near the 78.6 per cent retracement of the recent rise, which was at 15,700. The daily chart showed the selling got absorbed near a rising trendline drawn from the previous crucial swing lows, he said.
“The index is trading near the support zone at 15,700-15,600. A recovery is likely as long as it stays above 15,600 level on a closing basis. On the higher side, the index can head back towards the hurdle zone at 15,960-16,000, which holds the key for a larger upside,” Ratnaparkhi said.
For the day, Nifty closed at 15,752, down 171 points or 1.07 per cent.
Mazhar Mohammad of Chartviewindia.in said the index has again entered the sideways phase, whose lower end seems to be placed at 15,630 level.
“Nifty50 needs to defend the low of 15,707 level, as any failure to do so shall initially drag it down towards 15,630 level. If Nifty50 sustains above 15,707 level, it should ideally move sideways and that should facilitate a bounce into the 15,836-882 zone. It looks prudent to remain neutral at Nifty50 level, but intraday traders with high-risk appetite are advised to go short below 15,700 level and look for a modest target of 15,630 by placing a stop above intraday high,” he said.
Chandan Taparia of Motilal Oswal Securities said the index has negated the formation of higher highs and lows of the last five sessions. “It has to cross and hold above 15,750 level to witness a bounce towards 15,900 and 16,000 levels while on the downside supports exist at 15,700 and 15,600 levels,” Taparia said.
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