Subash Gangadharan, Technical and Derivative Analyst at HDFC Securities, said while the short-term uptrend remains intact, the market is showing signs of tiredness, as selling pressure emerges at higher levels.
The moving averages on the intra-day charts, too, have flattened, he said and indicated that the short-term uptrend has matured. Gangadharan believes the market could consolidate in a range over the next few sessions and find support near the 13,864 level.
Check out the candlestick formations in the latest trading sessions
ETMarkets.com“Our twin momentum oscillators triggered a sell signal post Thursday’s negative close. We expect the market either to consolidate or correct in the next few sessions. Weakness can be expected on Nifty’s fall below 13,936 level, while slightly bigger downside target can be expected on a close below 13,796 level. That said, since the momentum and liquidity remain strong, Nifty’s sustainance above 14,000 level may lift the index towards 14,200 level,” said Mazhar Mohammad of Chartviewindia.in.
For the day, Nifty closed at 13,981, down 0.20 point.
ETMarkets.com“On the daily timeframe chart, Nifty had another ‘Doji’. This seems to be a year-end effect, where traders seem to be looking to lock in gains for the year. The A series of ‘Dojis’ at the top end of the range suggests this could be distributed. But there are no confirmation signals. We continue to assume that the trend is upward and will remain up for the time being,” said independent investor Manish Shah.
“If Nifty holds above the support at 13,950, we should see more upsides towards the 14,130 level. On the lower end, key range watch out is 13,870-13,850. We remain buyers on declines. MACD has turned green in the last two days and the RSI is overbought, but the trend and momentum remain firm for the time being,” he said.
