Authors: TheIndianSubcontinent News AgencyNEW DELHI: The Nifty50 on Wednesday failed to capitalise on a strong start and saw brisk selling as soon as the opening bell rang, but eventually ended the session in the red.
The index formed a bearish candle similar to a Bearish Belt Hold and negated the formation of higher highs and higher lows, signalling a pause in the ongoing positive momentum.It could just be a healthy pause, said Mazhar Mohammad of Chartviewindia.in, who noted that momentum readings on the short to medium term charts were stretched, as the market has not witnessed any correction in last five weeks.At close, the 50-pack index stood at 10,718, down 21.30 points, or 0.20 per cent."As of now, no major technical breakdowns are visible on the lower timeframe charts, and hence, the Nifty50 may witness rangebound movement between 10,800 and 10,600 levels before witnessing a directional move, Mohammad said.Chandan Taparia of Motilal Oswal Securities said even though the index has negated formation of higher highs and higher lows of last three sessions, it saw a recovery from the day's low with the support of a rising trend line."The index needs to consolidate and hold above 10,680 to witness a rally towards 10,800.
A hold below 10,680 could trigger a decline towards 10,638 due to profit booking, he said.