The index closed near its 20-day simple moving average and analysts said this level must be defended for the sentiment to stay positive. The upside for the index is seen capped at 15,900 level while near-term support is seen at 15,450 level.
Two consecutive bearish candles from the high of 15,900 may be hinting at a potential ‘Double Top’ formation around the level, said Mazhar Mohammad of Chartviewindia.in.
Check out the candlestick formations in the latest trading sessions
“The index is hovering around its 20-SMA of 15,678 and it needs to sustain above the 15,670 level to prevent further damage. The larger trend is looking sideways, but the direction could be influenced by expiry-related factors. In any case, no strength should be expected in Nifty unless it closes above 15,900 level,” Mohammad said.
For the day, the index closed at 15,686, down 85.80 points or 0.54 per cent.
“The index is in consolidation mode and is seeing pressure on the higher side. Nifty50 can fall towards the hourly lower Bollinger Band, which is near the 15,600 level. Positional traders can look to initiate a fresh long position near the 15,600 level with a reversal below the recent low of 15,450. Once the short-term consolidation gets over, Nifty50 is expected to start the next legup,” said Gaurav Ratnaparkhi of Sharekhan.
Rohit Singre, Senior Technical Analyst at , said a double top on the hourly chart will get active below the 15,500 level. “The immediate supports are in the 15,600-15,500 range and below 15,500 level we may see good selling pressure. A fresh move is possible only on a close above 15,900 zone,” he said.
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