nifty tech view: Tech View: Nifty50 forms indecisive candle but further upside possible

Nifty50 on Friday rose for the third straight session however shaped a bearish candle on the every day chart that resembled a Hanging Man. The 50-pack index managed to shut above the 16,200 degree. Analysts stated the momentum stays constructive so long as the index stays above the 16,170 mark.

Mazhar Mohammad of Chartviewindia.in stated regardless of a powerful gap-up opening, Nifty50 registered an indecisive Hanging Man-like candle. The decrease shadow of the candle ought to have been barely longer to qualify as an ideal ‘Hanging Man’ candle, he stated.

“All through the buying and selling classes, the index remained largely inside a 50-point vary, which is usually a trigger for concern. Because the index closed above its vital hurdle of 16,172 degree, the bulls can goal at its 200-day EMA whose worth is positioned across the 16,550 degree. In between, it’s vital for the index to maintain above 16,157 ranges as a detailed beneath that degree can induce some weak point with an preliminary goal positioned within the zone of 16,045 – 16,011 degree,” he stated.

For the day, the index closed at 16,220.60, up 87.70 factors or 0.54 per cent.

“Nifty50 sustained above necessary resistance of the earlier opening down hole of June 13 at 16,170 degree and closed larger. Beforehand, not one of the opening draw back gaps have been taken out decisively on the upside within the final couple of months. If Nifty50 manages to remain above 16,200 ranges and strikes up within the subsequent 1-2 classes, that might imply an necessary pattern reversal on the upside for Nifty50 as per smaller and bigger timeframe chart,” stated Nagaraj Shetti, Technical Analysis Analyst at

Securities.

The index has crammed up a spot space that was created throughout the June decline and has now reached an important junction, stated Gaurav Ratnaparkhi, Head of Technical Analysis at Sharekhan.

“The NSE barometer has reached its every day higher Bollinger Band in addition to the higher finish of a rising channel. By way of the Fibonacci retracement, it has executed little greater than 61.8 per cent of the June fall. Thus, sustainability at this degree shall be essential to find out additional extension within the upmove. If Nifty50 crosses July 8 excessive of 16,275, it could possibly head in direction of 16,500 within the brief time period,” Ratnaparkhi stated.

On the flip facet, a transfer in direction of 16,050-16,000 is probably going on a fall beneath 16,200, the analyst stated.

(Disclaimer: Suggestions, options, views, and opinions given by the specialists are their very own. These don’t symbolize the views of Financial Occasions)