NEW DELHI: Nifty on Tuesday ended Calendar 2019 below the 12,200 mark. The index formed an ‘Opening Black Marubozu’ on the daily chart, as the bear grip strengthened after the index failed to break the resistance zone at 12,250-290. The index has breached its immediate support in the 12,210-12,200 zone, signalling prolonged consolidation, analysts said.
“Nifty has breached the immediate support in the 12,210-12,200 zone. This shows the minor-degree correction can get deeper. The consolidation that Nifty has been witnessing since the last few sessions is likely to be a prolonged one and can run into a couple of weeks. On the downside, the index can test the 12,000 mark,” said Gaurav Ratnaparkhi of Sharekhan.
He advised traders to stay on the sidelines. The index closed the session at 12,168, down 87.40 points or 0.71 per cent.
Tuesday’s selloff appears to have triggered a fresh leg of downswing, as the daily MACD oscillator generated a ‘sell’ signal, confirming a lower top at last Monday’s high of 12,286, said Mazhar Mohammad of Chartviewindia.in.
“The initial target could be the recent corrective swing low of 12,118 level. The near-term bearish outlook shall get negated only on a close above the 12,290 level,” he said.
“The RSI oscillator showed a negative divergence on the daily chart and we may see a small price or time correction in the coming days,” said Chandan Taparia of Motilal Oswal Securities.
Source: Economic Times