Tech View: Nifty50 forms small bullish candle, needs to top 12,000
Tuesday’s recovery was on the back of negative advance-decline ratio.
- Sensex jumps 186 pts on gains in Reliance, Airtel; market breadth stays weak
- Slow grind looms for stocks as demand stalls, says broker
- Rana Kapoor, Morgan Credits and YES Capital sell remaining 0.8% stake in YES Bank
- Mutual fund industry folio influx hits 3-month high in Oct; over 6 lakh accounts added
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.