nifty tech view: Tech View: Nifty50 forms indecisive candle but further upside possible

Nifty50 on Friday rose for the third straight session however fashioned a bearish candle on the every day chart that resembled a Hanging Man. The 50-pack index managed to shut above the 16,200 stage. Analysts mentioned the momentum stays optimistic so long as the index stays above the 16,170 mark.

Mazhar Mohammad of Chartviewindia.in mentioned regardless of a robust gap-up opening, Nifty50 registered an indecisive Hanging Man-like candle. The decrease shadow of the candle ought to have been barely longer to qualify as an ideal ‘Hanging Man’ candle, he mentioned.

“All through the buying and selling periods, the index remained largely inside a 50-point vary, which could be a trigger for concern. Because the index closed above its essential hurdle of 16,172 stage, the bulls can goal at its 200-day EMA whose worth is positioned across the 16,550 stage. In between, it’s essential for the index to maintain above 16,157 ranges as an in depth under that stage can induce some weak point with an preliminary goal positioned within the zone of 16,045 – 16,011 stage,” he mentioned.

For the day, the index closed at 16,220.60, up 87.70 factors or 0.54 per cent.

“Nifty50 sustained above vital resistance of the earlier opening down hole of June 13 at 16,170 stage and closed greater. Beforehand, not one of the opening draw back gaps have been taken out decisively on the upside within the final couple of months. If Nifty50 manages to remain above 16,200 ranges and strikes up within the subsequent 1-2 periods, that would imply an vital development reversal on the upside for Nifty50 as per smaller and bigger timeframe chart,” mentioned Nagaraj Shetti, Technical Analysis Analyst at

Securities.

The index has crammed up a spot space that was created throughout the June decline and has now reached a vital junction, mentioned Gaurav Ratnaparkhi, Head of Technical Analysis at Sharekhan.

“The NSE barometer has reached its every day higher Bollinger Band in addition to the higher finish of a rising channel. When it comes to the Fibonacci retracement, it has accomplished little greater than 61.8 per cent of the June fall. Thus, sustainability at this stage can be essential to find out additional extension within the upmove. If Nifty50 crosses July 8 excessive of 16,275, it may possibly head in direction of 16,500 within the quick time period,” Ratnaparkhi mentioned.

On the flip facet, a transfer in direction of 16,050-16,000 is probably going on a fall under 16,200, the analyst mentioned.

(Disclaimer: Suggestions, ideas, views, and opinions given by the consultants are their very own. These don’t characterize the views of Financial Occasions)