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Tech View: Nifty forms a Bearish Belt Hold pattern; momentum is weakening

If the index closes below 11,990 level, the correction may get accelerated further.

, ETMarkets.com|
Nov 29, 2019, 04.56 PM IST
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Nifty’s trading range for the entire month remained at 356 points, which can be a cause for concern going forward.
NEW DELHI: Nifty fell nearly 100 points on Friday to settle just above the 12,050 mark. The index formed a Bearish Belt Hold pattern on the daily chart. During the day, the index respected its immediate support at the 11,990 level, but eventually closed below its five-day moving average, suggesting a weakening of the bullish trend.

Despite registering a bullish candle on the weekly chart, the momentum appears to be weakening, as Nifty50’s trading range for the entire month remained at 356 points, which can be a cause for concern going forward, said Mazhar Mohammad of Chartviewindia.in.

“If the index closes below 11,990 level, the correction may get accelerated further. In that scenario, the ideal target will be 11,800 level. For the time being, upsides will remain capped around the 12,160 mark,” he said.

Manav Chopra of Indiabulls Ventures said the momentum on the index could be strong as long it does not fall decisively below 12,000 level.

“The broader uptrend remains strong and dips towards the support zone should be bought into. On a day Nifty fell 100 points, the market breadth was only a tad negative, which is a positive sign,” he said.

A positive momentum after the formation of three consecutive Doji candles on the weekly chart is a positive sign for the market, feels Chandan Taparia of Motilal Oswal Securities. “Till the time Nifty holds above the 11,980-12,000 range, we maintain our positive stance on the market for an up-move towards the 12,250 level,” he said.

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