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

Analysts said Nifty may get some support around 10,380 level and face resistance at 11,480.

, ETMarkets.com|
Sep 25, 2019, 05.30 PM IST
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NEW DELHI: After forming indecisive candles for two days, Nifty50 formed a ‘Bearish Belt Hold’ pattern on the daily chart on Wednesday. It respected the 100-day moving average at 11,413, but negated the higher lows formed over the past three sessions.

Analysts said Nifty may get some support around 10,380 level and face resistance at 11,480 in the coming sessions. For the day, the index settled at 11,440, down 148 points or 1.28 per cent.

“Nifty has entered the gap area formed in Monday’s trade. The immediate support should emerge at the lower end of the gap area i.e. 11,380. Only a sustained trade above this support can resume the upward move, taking the index to 11,480 and 11,590 levels,” said Aditya Agarwala, Senior Technical Analyst for Institutional Equities at YES Securities.

He said a breakdown can drag Nifty lower towards the 11,270-11,250 range.

Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan, said the lower end of the gap area along with the 38.2 per cent retracement of the recent rise i.e. 11,380-11,300, will act as near-term support for Nifty.

“Buy on dips would be the strategy recommended for positional traders. Key targets on the upside will be the recent high of 11,694 and the 78.6 per cent retracement mark at 11,790,” he said.

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