INSUBCONTINENT EXCLUSIVE:
NEW DELHI: A strong selloff from day's high of 10,850 level wiped off most of the gains that Nifty50 had logged in intraday trade
on Monday
This resulted in the formation of a small real body on the daily chart, with a long upper shadow that resembled a 'Gravestone Doji' pattern
The formation signalled a short-term reversal
That said, the index managed to close above the crucial support at 10,770, says Chandan Taparia of Motilal Oswal Securities, who believes
followup buying is required for the momentum to stay positive
Holding on to the 10,770 level may push Nifty50 towards 10,888
On the contrary, the index may drift towards its key support at 10,720 level, he said.
For the day, the index rose 19.30 points, or 0.18 per
cent, to close at 10,786.
The index needs to protect the 10,777 level, else selling may push it lower towards the 10,709 level, marking a
significant near-term top at 10,850, said Mazhar Mohammad of Chartviewindia.in
He advised investors to stay neutral and avoid longside bets for the time being.
Nagaraj Shetti, Technical Research Analyst at HDFC
Securities, felt existing long positions need to be protected with strict stop losses
He believes any further weakness from here on could give investors an opportunity to sell on rise on a short-term basis.
The Gravestone Doji
the above-mentioned pattern
The Nifty has crucial support at 10,760 and any violation of this level will trigger further downside towards 10,730 and 10,700 levels
Since the index is well placed above its 20-, 50- and 100-day SMAs and daily indicators RSI Stochastics are in the positive territory,
