Markets

Tech View: Nifty climbs, but forms a bearish candle; bias still positive

NEW DELHI: Nifty50 on Thursday climbed half-a-per cent to end December F&O series at 10,780 level. In the process, the index snapped a series of lower high and lower low formations that it had been witnessing in last four se ssions.

But the index could not capitalise on the gap-up start and ended up forming a small bearish candle on the daily chart. Further upside is a must to instil confidence among investors, experts said.

For the day, the index rose 49.95 points, or 0.47 per cent, to 10,779. During the session, it failed to surpass the crucial resistance at 10,835 level and eventually closed lower than its opening high, thus forming a bearish candle.

“The index recently made a high near the 10,985 mark and a low around 10,534. It is now hovering at the middle of this zone. The price setup suggests a broader trading range with limited upsides. The index needs to hold above the 107,50-10,777 range to extend its move towards the 10,850 and 10,929 levels. On the downside, support exists at 10,700 level,” said Chandan Taparia of Motilal Oswal Securities.

The Nifty50 needs to sustain above 10,747 to retain its recent positive bias. “A breach of the said level may lead to a corrective swing and tilt the tide in favour of the bears. In case the bulls manage to defend this level, a modest target of 10,894 can be achieved. It looks prudent for short-term traders to adopt a neutral stance until more clarity emerges,” said Mazhar Mohammad of Chartviewindia.in.

Original Article

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