NEW DELHI: Nifty50 on Thursday climbed for the second session to form a Shooting Star-like pattern on the daily chart.
The index kissed the 10,800 level during the session, but faced selling pressure at higher levels.For the prevailing momentum to continue, the index needs to breach the 10,830 level decisively in the near future.For the day, the index rose 83.70 points, or 0.78 per cent, to 10,768.
At this level, the index was well above its 20-, 50- and 100-day SMAs.During the session, the index retraced 78.6 per cent of the fall from 10,929 to 10,417, but near the key Fibonacci level, the bears finally intervened, said Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan.
Thursday's price movement does not alter the larger wave structure, which is still pointing towards some downside, Ratnaparkhi said.
The formation of a long upper shadow indicates selling pressure at higher levels.
This reiterates the key upper resistance at 10,750-70 levels, which had led to a sharp downward reversal in the Nifty50 during mid-May 2018, said Nagaraj Shetti Technical Research Analyst HDFC Securities.For Friday, if the Nifty50 trades below 10,722 level for at least one hour, then it may set the tone for profit booking next session, said Mazhar Mohammad of Chartviewindia.in.Rajesh Palviya of Axis Securities believes any decisive close above 10,830 will cause an upward breakout to its two months consolidation range 10,830-10,420 levels, which signal bullish sentiments ahead.
Downside supports are seen at 10,650 and 10620 levels, said Chandan Taparia of Motilal Oswal Securities.Analysts say there is no confirmation of any reversal at highs.
But any rise from here towards the 10,800 level and above carries higher possibility of weakness at higher levels, Shetti said.