The index shaped a small bearish candle, with an extended wick, reflecting intraday shopping for. Analysts mentioned the index is taking a breather and the upside appears to be like capped for now.
For the day, Nifty closed at 15,689, down 38.10 factors or 0.24 per cent.
Since final 5 weeks, Nifty50 is caught in a buying and selling vary between 15,950 and 15,500 ranges, mentioned impartial analyst Manish Shah. “This is ‘3 Week Tight’ chart pattern and within the context of the trend, we have a pause before the push,” he mentioned.
Nirali Shah of Samco Securities mentioned the index has established short-term assist at 15,500 degree, and a breach of this degree will increase the crimson flag to the continuing uptrend.
“This might trigger a profit-booking move and possibly short-term weakness in the market. Until then, we suggest traders maintain a bullish bias, keeping a stop loss below 15,440 level. The immediate resistance is placed at 15,900 level,” she mentioned.
Mazhar Mohammad of Chartviewindia.in mentioned the technical oscillators are deteriorating in favour of the bears, and the weekly MACD chart has generated a promote sign after briefly remaining in purchase mode for the three earlier weeks.
“It looks prudent to avoid buying the dips whereas intraday traders are advised to going short below 15,630 level. Look for a modest target of 15,500 level by placing a stop loss above the intraday high,” he mentioned.
Gaurav Ratnaparkhi of Sharekhan mentioned Nifty is buying and selling near the decrease finish of a reverse rising channel.
“The presence of all these parameters on the downside indicates that the downside risk in the short term is limited to the 15,600-15,550 range. On the other hand, Nifty50 can once again bounce back towards the 15,900 level, which will determine the larger upside potential to move towards the 16,400 level,” he mentioned.