NEW DELHI: Nifty50 on Friday signed off the week with a bearish candle on the daily chart.
The index did not generate any sell signal on the technical chart.
In fact, it formed higher highs and higher lows for the day and is likely to face resistance around the 10,800 mark next week.The key overhead resistance of 10,760-780 levels weighed on the market and led to weakness, said Nagaraj Shetti of HDFC Securities.
The weekly chart suggested lack of strength on the upside, Shetti said.For the day, the Nifty50 fell 39.95 points, or 0.37 per cent, to 10,696.
The outlook for next week remains choppy, and the crucial upside limit of 10,800 is expected to trigger sell on rise next week.
An immediate support to be watched out is at 10,550, Shetti said.
On the weekly scale, the index formed a 'Spinning Candle' with long shadows followed by a Dragon Fly Doji, which indicated a tough fight between the bulls and the bears, said Chandan Taparia of Motilal Oswal Securities."The immediate trend is positive, but followup buying was missing at higher levels.
The index has to hold above 10,650 to extend its gains towards 10,780 level, while downside support was seen at 10,620, he said.Mazhar Mohammad of Chartviewindia.in noted that none of the technical parameters generated fresh sell signals on the lower time frame charts, and the market might gain strength if Nifty closes above 10,777 level over the next few sessions.On the contrary, if weakness persists, the indices may once again retest the recent low at 10,550.
Essentially, it looks like the market is directionless and is stuck in a range between 10,750 and 10,550 levels, he said.