NEW DELHI: The Nifty50 settled lower on Wednesday, but defended its supports at 10,600 and 10,550 well to settle with marginal losses.
The index formed a small bullish candle on the daily chart, even as it continued to form lower highs and lows for the second session.The said supports stayed intact as the Nifty50 headed for FO expiry on Thursday.
For any upside, the initial hurdle in the 10,650-80 range needs to be broken decisively.The index continues to sustain below its 20-day SMA, which signals weakness in the near term, said Rajesh Palviya of Axis Securities.
Wednesday's pattern does not signal any comeback of the bulls, said Nagaraj Shetti of HDFC Securities.For the day, the index fell 18.95 points, or 0.18 per cent, to 10,614.
It has to continue to hold above 10,550 to extend its gains towards 10,680 and then 10,725 levels, while on the downside, supports are seen at 10,550 level, said Chandan Taparia of Motilal Oswal Securities.After showing a reversal type candle pattern on Tuesday, Nifty showed some recovery from Wednesday's low.
Formation of a small bullish candle indicates small buying interest, but Niftys short-term trend remains dicey, Shetti said.After Thursdays FO expiry, the index may re-test the 10,800 level, said Vikas Jain of Reliance Securities.For now, experts such as Mazhar Mohammad of Chartviewindia.in advise traders to focus on stock-specific opportunities, with a stop loss placed below 10,550 on a closing basis.
A breach of the 10,550 level shall enhance selling pressure on the market with initial targets placed around the 10,480 mark,Mohammad said.