Nifty Analysis: Tech View: Nifty forms indecisive Doji; upside limited from here on

NEW DELHI: Nifty50 on Tuesday formed a ‘Doji’ candle on the daily chart, suggesting indecisiveness among traders. Analysts said the index failed to capitalise on a small gapup start and traded in a narrow range throughout the day. They see the possibility of limited upside in Nifty towards the 16,000-16,050 zone, on a breach above the 15,900 level.

Mazhar Mohammad of Chartviewindia.in said the technical picture on the oscillator front, across time frames, looks extremely stretched.

“In case the bulls manage to get past the 15,900 level, Nifty’s rise may get extended to around 16,050 level. Contrary to this, a close below today’s minor gap zone of 15,842-823 levels can induce more selling pressure, with a possible target placed around 15,600 level. For the time being, the risk-reward does not look favorable,” he said.

Nifty closed the day at 15,869, up 57.40 points or 0.36 per cent.

Gaurav Ratnaparkhi of Sharekhan said the index has been rising in a channelised way for the last few sessions on the hourly chart and is consolidating near the upper channel line.
“The overall structure shows Nifty is inching towards the initial target of 16,000. On the other hand, the lower end of the rising channel, which is near 15,700, will act as a crucial near-term support,” he said.

Chandan Taparia of Motilal Oswal Securities said the index needs to hold above 15,800 level to witness a rise towards 16,000 level. Downside support, Taparia said, has shifted higher to 15,750 and 15,600 levels.

Check out the candlestick formations in the latest trading sessions


Ashis Biswas, Head of Technical Research at CapitalVia Global Research, said even as a breakout above 15,900 level is the key factor from a short-term perspective, sustaining above this level is important for the market to gain momentum. “We advise traders to consider a breakout above 15,900 level as an opportunity to build fresh long positions,” he said.