Tech View: Nifty ends flat but uptrend stays intact

Nifty50 on Wednesday ended almost flat but stayed above its 200-day simple moving average for the eighth straight day. The index formed a Hanging Man candle on the daily chart but there were no signs of weakness, said analysts, who see good support for the index near 17,350 level.

The technical picture, at this juncture, appears to be mixed as the bulls are making every effort to inch higher though, even as an indecisive formation like Hanging Man was registered in Wednesday’s trade, said Mazhar Mohammad of Chartviewindia.in.

“Despite overbought readings on the daily as well as some weekly oscillators, the price chart is not displaying meaningful weakness which may not materialise unless the index slips below 17,359 level. If the index sustains above 17,442, eventually the index can head towards 17,800 level. Short-side traders are advised to remain neutral whereas longside players should maintain a stop below 17,440 level,” he said.



For the day, the index closed at 17,534.75, up 9.65 points or 0.06 per cent.

Gaurav Ratnaparkhi of Sharekhan said that while there is weakness in the short term momentum indicators, the price action is maintaining the upward trajectory. “Minor degree dips are getting support near the 20-hour moving average. As long as the index trades above the near term support zone of 17,360-17,300 it is expected to hold the short term positive stance. Thus, going ahead, the Nifty can test 17,750-17,800 in the short term,” Ratnaparkhi said.

Rupak De, Senior Technical Analyst at

said the index has confirmed the resilience of the uptrend by closing above the previous congestion high on the daily chart. “The important moving averages are lying comfortably below the current index value confirming the uptrend. The trend may remain bullish over the short term as long as it remains above 17,350. However, the rally towards 17,750-17,800 is likely to attract selling pressure at the higher levels,” De said.

Nifty Bank

For the day, the index closed at 38,287.85, up 50.45 points or 0.13 per cent. Mohit Nigam, Head – PMS at Hem Securities said immediate support and resistance for Nifty Bank are at 37,700 and 38,750, respectively. Om Mehra, Technical Associate at Choice Broking finds 37,650 level as key Nifty Bank support and 38900 level as the key index hurdle.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)



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