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Tech View: Nifty50 forms small bullish candle, needs to top 12,000

Tuesday’s recovery was on the back of negative advance-decline ratio.

, ETMarkets.com|
Nov 19, 2019, 04.45 PM IST
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In last three sessions, price action appears to be in a narrow 11,973 – 11,867 range.
NEW DELHI: Nifty50 on Tuesday saw a fag-end rally, but failed to close above the lower end of a crucial 11,950-12,000 range. The index ended up forming a Small Bullish Candle on the daily chart. Analysts said the advance-decline ratio needs to improve, as the index looks to take out the 12,000 level in the coming days.

Tuesday’s recovery was on the back of negative advance-decline ratio, with energy heavyweight RIL alone contributing 42 points to Nifty. This can be a cause for concern, said Mazhar Mohammad, Chief of Chartviewindia.in.

“In last three sessions, price action appears to be in a narrow 11,973 – 11,867 range and that with indecisive candle formations. Hence, sooner than later, Nifty may be heading for a breakout on either directions,” he said.

For the day, the index closed at 11,940, up 55.60 points or 0.47 per cent.

“If the index manages to hold the current levels, we may see a decisive break above the strong resistance at 12,000 mark. The index is likely to find support near the 11,900-11,850 range,” said Rohit Singre, Senior Technical Analyst at LKP Securities.

Sameet Chavan of Angel Broking expects the index to soon breach the 12,000-mark.

“Nifty has finally managed to surpass the first hurdle at 11,900 on a closing basis. The major charioteer for this move was clearly the banking pack, which has been showing some encouraging signs in the past couple of days. The way both Nifty and Nifty Bank have shaped up, the 12,000 level or beyond is not too far for the market. Hence, we remain sanguine and expect the immediate support base to shift higher towards the 11,867-11,802 range,” he said.

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