A bearish candle with upper and lower shadow signals a formation of a high wave type candle pattern, which reflects high volatility in the market. “Normally, a formation of such a pattern after a reasonable upside or decline indicates an impending trend reversal,” said Nagaraj Shetti, Technical Research Analyst, Securities.
For the day, the index closed at 15,938.65, down 28 points or 0.18 per cent. This was the fourth straight session when the index closed in the red.
“As Nifty50 has approached its key 20-day moving average, whose value is placed around 15800, some buying support may emerge as the index is already down for the last four trading sessions. In that scenario, the bulls can make a pullback attempt, but strength shall not be expected unless it closes above 16,070. A close below 15,800 can confirm the resumption of the larger downswing with initial targets placed around 15,183,” said Mazhar Mohammad of Chartviewindia.in.
Gaurav Ratnaparkhi of Sharekhan said the index had seen a decent pullback from 15,200 to 16,200 in the last few weeks. The index is now approaching the lower end of a rising channel on the hourly chart & the 20-DMA, which is near 15,800-15,850, he said.
“Overall the structure shows that the index has a potential to break this near-term support zone and head lower towards 15,500. On the other hand, 16,000-16,050 is expected to act as a near-term hurdle & any bounce towards that area can be taken as a fresh selling opportunity,” he said.
Nifty Bank
Kunal Shah, Senior Technical Analyst at
, said the banking index continued to face selling pressure from higher levels.
“It faced stiff resistance at the 35,200-35,300 zone. The lower-end support stands at 34,400 and, if breached, will lead to further selling pressure towards 34,000. The index is broadly stuck in a range between 34,400-35,300 zones, and a break on either side will lead to trending moves,” he said.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
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