INSUBCONTINENT EXCLUSIVE:
NEW DELHI: The Nifty50 negated the formation of higher highs on Monday and made a bearish candle similar to the 'Bearish Harami' pattern on
the daily chart.
Traders are directionless, say analysts, who believe the index will see support at 10,700 level, while it may see
resistance in the 10,830-50 range
Till the time the index decisively breaches this range, any strong direction is unlikely.
A 'Bearish Harami' followed by a 'Bullish Harami'
pattern indicates that the bulls and the bears are not ready to loosen their grips and followup action was missing on both sides, said
Chandan Taparia of Motilal Oswal Securities.
For the day, the Nifty50 fell 59.40 points, or 0.55 per cent, to close at 10,762
The 50-pack index continued to alternate between gains and losses for the fourth session
underlying trend is rangebound and this action is likely to continue for next session
The weekly timeframe chart pattern indicates limited upside for Nifty in the near term
Chartviewindia.in.
The 10,700 level appears to be a critical support, whose breach should ideally enhance selling pressure with bright
prospects for the Nifty to head towards the 10,400 mark
Till such a breakout is achieved on either side this market shall remain listless in the expiry week
It looks like traders will be better off adopting a neutral stance, Mohammad said.
RSI is also oscillating in a range from 40-60 points,
affirming sideways consolidation, said Aditya Agarwala, Technical Analyst of YES Securities
This analyst sees the market in a broader range between 10,700 and 10,850 levels.
The hourly chart structure remains weak, but Nifty
continues to sustain above its 20-day and 50-day SMAs, which indicate that its short- to medium-term trends will remain bullish
An immediate intraday hurdle is placed around the 10,780 level, said Rajesh Palviya of Axis Securities.
