NEW DELHI: The bulls failed to push the Nifty50 above its immediate resistance at 10,290 on Tuesday, giving the bears a chance to regain lost ground.
The index slipped below the 10,200 mark to form a small bearish candle, which resembled a Spinning Top on the daily chart.
During the session, the index respected the support around the 10,180 mark but its failure to deliver a followup rally after two days of strong gains is worrisome.For the day, the index closed 52.45 points, or 0.51 per cent, down at 10,198.Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan said the 38.2 per cent retracement of the recent fall i.e.
10,274, acted as a barrier.Volatility is likely to stay in the market with the possibility of Nifty forming a wedge pattern.
This means the index is likely to remain under pressure and any minor bounceback is likely to get sold into.
The hurdle zone has shifted lower to 10,360-10,400 range.
On the downside, Nifty looks poised to test its crucial support in the 10,000-9,952 zone with the possibility of breaching it and heading lower, he said.Chandan Taparia of Motilal Oswal Securities said the index needs to defend the 10,180-10,200 range to extend its move towards the 10,280 level.Mazhar Mohammad of Chartviewindia.in advised investors to maintain a neutral stance on the index for the time being unless it decisively gets past the 10,290 mark.The current weakness is not threatening the short-term bottom reversal of the market so far, said Nagaraj Shetti of HDFC Securities.