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.
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.