NEW DELHI: The Nifty50 rose for the six consecutive session on Monday, but showed signs of fatigue as it formed a small bearish candle on the daily chart for the second session.

Analysts have neutral to positive stance on the index, for now.

A small bodied negative candle was formed on Monday at the new swing high of 10,940, which indicates a choppy trend for the market, said Nagaraj Shetti, Technical Research Analyst at HDFC Securities. “Nifty is showing rangebound movement after moving above a key overhead hurdle in the 10,850-900 zone, and it is not a good sign.

One may expect rangebound action or minor downward correction in the next session,” Shetti said.

The index settled 7 points, or 0.06 per cent higher at 10,883 for the day.

Analysts said the modest closing gains poured water on expectations of a rally amid strong 1-3 per cent gains clocked by Asian markets.

Yet, there was no sign of weakness, said Sameet Chavan of Angel Broking, who still feels Nifty is headed towards the 10,940-11,000 range. “One can stay positive until the index breaks below its major support zone in the 10,700-10,650 range.

Friday’s gap area between 10,782 and 10,757 is likely to act as an immediate support zone,” the expert said.

Some analysts, though, have turned cautious.

“Signals are registered on momentum oscillators of lower time frame charts, suggesting caution in the near term,” said Mazhar Mohammad, Chief Strategist – Technical Research at Chartviewindia.in. On Tuesday, if Nifty50 trades below 10,840 for at least one hour, it may test its 200-day moving average placed at 10,746, he said, adding that traders could adopt a neutral stance on the market for a couple of days.