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Tech View: Nifty forms small bearish candle, but looks ready to go higher

NEW DELHI: Nifty reclaimed the 12,250 level on Monday even as it formed a small bearish candle on the daily chart with a long lower wick, suggesting that the intraday selling got bought into.

Analysts expect the index to face resistance around the 12,290 mark in the coming days.

“As the index inches towards to its recent high at 12,290, the tussle between the bulls and bears has intensified, “said Aditya Agarwala, Senior Technical Analyst – Institutional Equities, YES Securities.

“A successful trade beyond 12,290 level can resume the upward journey, taking it higher to 12,350-12,400 levels. On the flip side, a failure to take out the 12,290 level may trigger profit booking and drag the index lower to 12,075-12,020 levels. The RSI is oscillating sideways in a narrow band, confirming the ongoing sideways action,” Agarwala said.

For the day, the index closed at 12,260, up 14.80 points or 0.12 per cent. Monday’s pattern indicated a choppy movement in the market with a positive bias, said Nagaraj Shetti, Technical & Derivative Analyst at HDFC Securities

“The positive chart formation of higher highs and lows continued. There is a possibility of yet another new high formation in the next 1-2 sessions. Levels around the 11,350-400 zone need to be watched out,” Shetti said.

Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan, expects Nifty to consolidate in the 12,300-12,200 range, before climbing higher.

Source: Economic Times