INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Tuesday marked the second consecutive session when the Nifty50 hit an intraday high in opening trade, but then slipped through
The Narrow Range 7 (NR7) pattern has sent a breakdown signal
In addition to weakness on other technical indicators, this suggests more pain ahead for the index in the short term
fills this gap and settles below the 10,698 level, it may initially head to test its 50-day EMA of 10,646 from where it had bounced back
The analyst advised traders to make use of rallies towards 10,770 to create fresh shorts with a stop loss at 10,830
For the day, the index declined 89.40 points, or 0.83 per cent, to end at 10,710.
The Nifty50 index broke its immediate supports at 10,750
and 10,720 levels, saw a breakdown from its Narrow Range 7 (NR7) pattern and closed near the support of its rising channel on the daily
chart by connecting the recent swing lows of 10,417 and 10,550 levels, said Chandan Taparia of Motilal Oswal Securities.
If it sustains
below 10,750, profit booking can continue till 10,660 and 10620 levels, he said
Both the 14-day RSI and Stochastic are in the negative territory
The daily chart pattern is showing a negative bias and signals more weakness in the short term
Nagaraj Shetti of HDFC securities
On the hourly chart, the index has witnessed a shift in trend as it formed lower tops and lower bottoms,
said Rajesh Palviya of Axis Securities
An immediate intraday support is placed around the 10,700 and 10,690 levels, and any violation of these levels may accelerate selling
