Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
11,912.45-105.95
Stock Analysis, IPO, Mutual Funds, Bonds & More

Tech View: Nifty forms ‘Bearish Belt Hold’; bears in full control

It formed a ‘Doji’ on the weekly chart for a third consecutive week.

ETMarkets.com|
Nov 22, 2019, 07.28 PM IST
0Comments
Shutterstock.com
shutterstock_1061481884
The index shuttled between an intraday high and low of 11,968 and 11883.50, respectively.
NEW DELHI: NSE Benchmark Nifty extended its weakness for the second straight session on Friday and formed a ‘Bearish Belt Hold’ kind of formation on the daily chart. Moreover, it formed a ‘Doji’ on the weekly chart for a third consecutive week.

For the day, Nifty closed 54 points, or 0.45 per cent, down at 11,914.40. The index shuttled between an intraday high and low of 11,968 and 11883.50, respectively.

Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia said: “This chart formation is clearly suggesting that the market is on a pause mode for the time being and looks like in a range of 12,035-11,800. However, as it is holding on to its 13-day exponential moving average (11,899), breach of this on a closing basis will accentuate selling pressure further with initial target of 11,802.”

Rajesh Palviya, Head-Technical and Derivatives, Axis Securities said, “The chart pattern suggests that if Nifty crosses and sustains above 12,035 level it would witness fresh buying action which would lead the index towards 12,100-12,150 levels, while if index breaks below 11,800 level it would witness selling, which would take the index towards 11,700-11,620.”

At present, the 50-share index is trading above its 20, 50, 100, and 200-day simple moving averages (SMA), indicating positive bias in the short term.

“Nifty continues to remain in an uptrend in the medium term, so buying on dips continues to be our preferred strategy,” Palviya said.

The weekly strength indicator RSI moved upwards and was above its reference line indicating positive bias. However momentum oscillator Stochastic turned negative from the overbought zone, indicating a possible consolidation or a corrective move in the near term.

Also Read

Tech View: Nifty forms Bearish Belt Hold pattern; showing fatigue

Tech View: Nifty forms Bearish Belt Hold, outlook turns bearish

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

Tech View: Nifty50 forms Bearish Belt Hold pattern, looks indecisive

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service