NEW DELHI: The Nifty50 faced resistance at higher level on Friday to eventually settle flat. The index, though, respected its key support at 11,000 level. In the process, it formed a small bearish candle on the daily chart, signalling the possibility of a near-term pause in the ongoing momentum.
That said, a bullish candle was clearly visible on the weekly chart with a full-fledged breakout above the eight-week consolidation zone, said Mazhar Mohammad of Chartviewindia.in.
“The pause shall eventually pave the way for a fresh breakout, which shall initially lead Nifty to test of lifetime high around 11,171 level,” he said.
For the day, the index fell 4.30 points, or 0.04 per cent, to close at 11,018. Its intraday low of 10,999 was strikingly similar to Thursday’s low of 10,999.
The gap zone between 10,999 and 10,960 will be the immediate support for the index. A trade below 10,960 can trigger fresh profit booking and pull the index to 10,900 level, said Aditya Agarwala, Technical Analyst at YES Securities.
“However, a sustained trade above 10,960 will resume the minor fifth impulse wave, which can take the index to 11,100 and 11,170 levels,” Agarwala said.
The index hit an intraday high of 11,071 during the session. “It has to hold above 10,975 to extend its gain towards 11,080 and the lifetime high of 11,171,” said Chandan Taparia of Motilal Oswal Securities.
Weekly momentum oscillators such as 14-day RSI and ADX/ADX are all signalling a sharp upside momentum in the market, said Nagaraj Shetti of HDFC Securities. He sees strong resistance for Nifty50 in the 11,170-200 zone in the coming week.
Source: Economic Times