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


You can switch off notifications anytime using browser settings.

News

11,661.8575.5
Stock Analysis, IPO, Mutual Funds, Bonds & More

Tech View: Spinning Top on charts shows Nifty may head either way

Support levels shifted higher as the index formed higher highs and lows for yet another day.

, ETMarkets.com|
Jun 27, 2019, 04.57 PM IST
0Comments
Getty Images
Stock19-Getty-1200
NEW DELHI: Nifty50 settled June series futures and options contracts on a flat note. During Thursday’s trade, the index saw selling pressure after kissing the 11,900 mark, as it eventually ended forming an indecisive ‘Spinning Top’ on the daily chart.

Support levels shifted higher as the index formed higher highs and lows for yet another day. The index now needs a sustainable move above 11,850 to pick up positive momentum.

Otherwise, a minor short-term correction could be in place, said Nagaraj Shetti HDFC Securities. “With its close in the red, Nifty has completed the three-wave pullback that had started from 11,625. The pullback was contained within a rising channel on a closing basis. Hence, the bearish outlook remains intact,” said Gaurav Ratnaparkhi of Sharekhan.

In terms of the Fibonacci retracement, Thursday’s pullback was just short of the 61.8 per cent retracement of the June series decline, which was at 11,920.

“Thus, the next downward leg looks around the corner. On the downside, the 11,820-11,800 range is an immediate support zone below which the index can test the June low of 11,625,” Ratnaparkhi said.

If Thursday’s profit booking was expiry-related, and the market stabilises on Friday, then Nifty50 should ideally pick up momentum.

“In such a scenario, one can look for higher targets placed around 12,000. Clarity will emerge after Friday’s session. For the time being, it would be prudent for traders to remain neutral,” said Mazhar Mohammad of Chartviewindia.in

For the day, Nifty50 fell 6 points, or 0.05 per cent, to end at 11,841.

Also Read

Tech View: Nifty forms indecisive Spinning Top, outlook cautious

Tech View: ‘Spinning Top’ on weekly chart shows consolidation to continue

Tech View: Nifty forms indecisive Spinning Top, may see consolidation

Tech View: Nifty forms Spinning Top; investors appear indecisive

Tech View: Nifty forms an indecisive Spinning Top, suggests bearish bias

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