A Bearish Belt Hold reflects selling pressure from the word go. It is formed when the opening level and the intraday level of the index are nearly the same.
“The last two days of price action is pointing towards some sort of discomfort among the bulls at higher levels as the market is headed for the monthly expiry. The index may remain volatile and choppy in the next two sessions. If Nifty50 slips below 15,147, it may come under intraday selling pressure. Managing a move past 15,300 would clear the decks for new lifetime highs in the next three trading sessions itself,” said Mazhar Mohammad of Chartviewindia.in.
Mazhar advised traders to refrain from shorting, but believes intraday traders with high risk appetite can go long above 15,300 for modest targets of 15,400 levels.
Check out the candlestick formations in the latest trading sessions
ETMarkets.com
The index hit an intraday high of 15,293.85 in opening trade, before closing the day at 15,208.45, up 10.75 points or 0.07 per cent.
Manish Hathiramani, Technical Analyst at Deen Dayal Investments, said, a breach of the 15,300 level can open up doors for 15,550-15,600 levels. “We have good support at 14,900-15,000 and till Nifty50 holds that level, it is in a bullish territory and one can utilise any correction in the index to accumulate long positions,” Hathiramani said.
Rohit Singre of LKP Securities said that the market structure will remain positive as long as the index stays above the 15,000 level. He advised traders to book some profits in the 15,330-15,430 range.
ETMarkets.comin a strategy note said the formation of higher Peaks and Troughs coupled with multi-sector participation makes it confident of keeping its structural stance on the index. “We expect Nifty50 to resolve above the all-time high of 15,400 and eventually head towards a revised target of 16,400 over the next quarter, led by BFSI, consumption, auto and infra. In the process, we do not expect the index to breach the threshold of 14,600. Thus, dips should be utilised to accumulate quality largecap and midcap stocks,” it said.
