On the weekly scale, the index formed a Bullish Hammer candle. It was the fourth straight week when the index traded in a tight range. A move past 15,900 would be a test for the Nifty50 bulls, analysts said.
“Weekly charts remained subdued with a narrow trading range of 315 points. The market may be in a distribution phase at higher levels, which will be confirmed only on a breakdown below the 15,600 level on a closing basis. Such narrow trading ranges with indecisive formations and negative advance-decline ratio can be a cause for concern,” said Mazhar Mohammad of Chartviewindia.in.
Mohammad said the 15,900 level can give much-needed confidence to the bulls who can get the courage to march towards 16,300 levels. It would be critical for the bulls to sustain above the 15,768 level to retain a positive bias.
For the day, the index closed at 15,856.05, up 32 points or 0.2 per cent.
The chart patterns, said Chandan Taparia of Motilal Oswal Securities, suggest declines are being bought into but the follow up buying is missing at higher zones.
“Nifty50 has to hold above 15,800 to witness an up move towards 15,962 and 16,000 levels. On the downside, support exists at 15,750 and 15,700 levels,” Taparia said.
Independent Analyst Manish Shah said that a close above 15,880 will be the first sign that the gap area of 15,880-15,840 is closed and the markets could move higher.
