NEW DELHI: Nifty50 on Friday formed a bullish candle on the daily chart and negated a lower high formation that it saw in the last three trading sessions. On the weekly scale, the index formed an indecisive Doji candle. Analysts said the NSE barometer may stay range-bound for now. They find 17,750-600 levels to offer some support to the index going ahead.
“The daily chart is hinting at a short-term bottom but an indecisive Doji on the weekly chart is raising the question mark about the upmove, which is in progress from the low of 15,671 over a period of five weeks. A stay above 17,600 level can help the bulls retest recent highs at around 18,100 levels,” said Mazhar Mohammad of Chartviewindia.in.
The index closed the day at 17,784.35, up 144.80 points or 0.82 per cent.
Amol Athawale of Kotak Securities said the market took the support near the 10-day SMA and has formed a promising reversal formation, which indicates the continuation of a pullback rally in the near future.
“We are of the view that the range-bound texture is likely to continue in the short run. For the bulls, 17,550 would be the key support zone, above which the index could hit the level of 17,900-18,000. On the flip side, if the index closes below the 10-day SMA or 17,550, it could hit 17,400-17,300 levels.”
Yesha Shah, Head of Equity Research, Samco Securities weekly chart hinted at the short-term weakness in the market. But she recommended traders to retain a modestly bullish outlook. “The immediate support and resistance for the benchmark are now placed at 17,600 and 18,100 levels. Any break below the support will need a re-examination of the bullish bias,” she said.
Rupak De, Senior Technical Analyst at LKP Securities said Nifty50 found resistance around the lower band of the rising channel. “The index may find resistance at 18,000 while on the lower end, support exists at 17650,” De said.
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