Tech View: Nifty forms indecisive candle but analysts see recovery ahead
Certain positive factors cropped up on the lower time frame charts in the form of positive divergences apart from momentum oscillators, generating buy signals, said Mazhar Mohammed of Chartviewindia.in.
“Moreover, in Monday’s session, the Nifty50 managed to defend Friday’s low of 15,183 level. Hence, it appears that the Nifty50 is positioning itself for a pullback rally. Therefore, as long as it sustains above 15,181, it can stage a relief rally for an initial target of 15,600 level. Contrary to this, a close below 15,181 can extend the weakness towards the 14,900 level,” Mohammed said.
Milan Vaishnav, Founder & Technical Analyst at Gemstone Equity Research, said with Friday’s low point getting protected, the bullish divergence on the Relative Strength Index (RSI) has been confirmed. The RSI, he said, has crossed above 30 from the oversold situation and has laid a framework for the market to inch higher towards 15,500 as we do not have any incremental negative points to deal with, he added.
The index closed the day at 15,350.15, up 56.65 points or 0.37 per cent.
Gaurav Ratnaparkhi, Head of Technical Research at Sharekhan said the index has been trading in the 15,200-15,400 range.
“On the higher side, 15,400 is acting as a stiff barrier. As long as the index stays below this level, it is expected to trade sideways to downward bias and can test 15,100-15,000 on the downside. On the flip side, if 15,400 gets taken out, the index will be set for a bounce-back towards 15,600-15,700,” Ratnaparkhi said.
Nagaraj Shetti, Technical Research Analyst at HDFC Securities, said that the short-term trend of the Nifty50 continues to be volatile with broader range movement. A decisive move above 15,500 could open an upside bounce in the market. Important support to be watched around 15200 level, Shetti said.
of said that the index took support at 32,400 but failed to surpass the 33,000 zone. The index formed a small bodied Bearish candle on a daily frame with a long lower shadow.
“Now, till it holds below 33,000, weakness may be seen towards 32,250 and 32,000 whereas hurdles are placed at 33,333 and 33,500 zones,” Taparia 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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