NEW DELHI: Nifty50 on Thursday snapped a four-day losing streak to end above the 12,150 level. In the process, it formed a Bullish Harami candle on the daily chart. The 12,220 level may now continue to act as the immediate hurdle for Nifty, analysts said.
A Bullish Harami pattern has a bullish connotation for the near term, provided Nifty50 sustains above the 12,094 level and sees follow-through buying next session, said Mazhar Mohammad of Chartviewindia.in.
“However, any trend reversal in favour of the bulls can be expected on a close above 12,225 level. Contrary to this, a close below 12,087 level can resume the weakness,” Mohammad said.
For the day, the index rose 73 points, or 0.60 per cent, to 12,179.
On the hourly charts, the index is approaching the junction of the 40-hour exponential moving average and the hourly upper Bollinger Band, which can induce the bears to go for a fresh round of selling, said Gaurav Ratnaparkhi of Sharekhan.
“Thus, the 12,200-12,220 range will be a key barrier to watch out for. Unless this resistance is taken out on a closing basis, Nifty can tumble towards the daily lower Bollinger Band at 12,000 level,” Ratnaparkhi said.
Arun Kumar of Reliance Securities said the ongoing counter-trend rally may terminate around the 12,200 – 12,260 range, based on the weak setup of key indicators. The near-term oscillators still remains in sell mode, he said.
Source: Economic Times
