INSUBCONTINENT EXCLUSIVE:
NEW DELHI: The bulls were at the receiving end on Monday
In the process, the 50-pack index formed a Bearish Engulfing Pattern on the daily chart.
A breach of the 10,600-620 range in the coming
session may further weaken the technical outlook for the index
On the other hand, the 10,770 level proved too strong a hurdle and may remain so over the next few sessions.
For the past three sessions,
the Nifty50 failed to cross multiple resistance zone between 10,780 and 10,790 levels, which now remains a crucial hurdle, said Rajesh
Daily strength indicator RSI and momentum oscillator Stochastic both turned negative and are below their respective reference lines,
More weakness could be in store in the near term, and the next lower level to be watched is 10,555, in the next few sessions, said Nagaraj
Shetti, Technical Research Analyst at HDFC Securities.
If it fails to hold its crucial support at 10,620, then weakness could get extended
towards 10,550 level, says Chandan Taparia of Motilal Oswal Securities
Taparia sees upside hurdles at 10,680 and 10,707 levels.
Mazhar Mohammad of Chartviewindia.in advised short-term traders to avoid fresh
longs, barring select scrips, where upside strength is clearly visible on the technical charts.
He sees limited upside and said the ideal
destination for the ongoing downswing is placed at 10,419
This will culminate one leg of corrective structure, he said.
