NEW DELHI: The Nifty50 ended just shy of the 10,550 mark on Thursday and formed a ‘Doji’ pattern on the daily chart, suggesting that the bulls have become indecisive at higher levels.
Technical analysts were not surprised, as the index has failed to capitalise on morning gains in the past few sessions. The index would now face immediate resistance at 10,600 level, as was the case on Thursday . The downside support is seen at the 10,480 level.
At close, the 50-pack index was up 44.60 points, or 0.42 per cent, at 10,545. The index hit a day’s high of 10,618 during the session.
“The long upper shadow on the daily chart suggests lack of conviction on the part of the bulls at higher levels, where they have succumbed to the selling pressure of the bears. That said, the price
action looks slightly advantageous to the bulls. Traders are advised to focus on stock-specific opportunities as directional move in the index will emerge only on a decisive breakout of the 10,398-10,600 range,” said Mazhar Mohammad of Chartviewindia.in.
The index has been faced a hurdle at its 50-day EMA for the last seven sessions.
A cluster of supply is visible in the 10,600-10,650 range. If the index sustains below 10,480, weakness would extend towards 10,400 and 10,333 levels, said Chandan Taparia of Motilal Oswal Securities. On the upside, immediate hurdles are seen at 10,600 and 10,650 levels, he said.
Source: Economic Times