Nagaraj Shetti of
Securities said the index formed a bearish candle with a long lower shadow, which indicates the formation of ‘Hammer’, even as it may not be the classical one.
“Such market action signals a short-term bottom reversal pattern for the market. This could also indicate a false downside breakout of the small range at the 15,700 level. This is a positive indication, and one may expect upside in the short term,” Shetti said.
This analyst believes only a sustainable upmove above 15,900-15,950 could bring the bulls back into the market. He sees immediate support at 15,630.
For the day, Nifty50 closed at 15,752.05, down 28.20 points or 0.18 per cent. The index recovered smartly from the intraday low of 15,511, said Mazhar Mohammad of Chartviewindia.in, who also felt Friday’s formation was similar to ‘Hammer’.
“On the weekly charts, it appears to be staring at a bearish gap zone of 15,886 and 16,172 levels. Unless Nifty50 absorbs the supplies emanating from the said bearish zone, with a close above 16,172 level, a sustainable up move shall not be expected. Moreover, for a long side trade from the current levels, technically, the stop loss level remains below 15,511, which may not deliver a favourable risk-reward ratio,” it said.
Gaurav Ratnaparkhi of Sharekhan said even as the index started the week on a strong note, it could not build upon the gains.
“It witnessed consolidation throughout the week. Near term support zone was placed around 15,700-15,650, which the index breached on July 1. However, it received support near 15,500. Overall structure shows that the index is likely to witness consolidation in the range of 15,500-15,900 in coming sessions,” Ratnaparkhi said.
Nifty Bank
Chandan
of Securities said Nifty Bank opened negative but showed stellar recovery right from the start of the day. The index took support at 33,100 and trended upwards throughout the day to 33,666 as the index ended up outperforming the broader market at the close.
“It formed a Bullish candle on the daily frame but a bearish candle on the weekly frame. Nifty Bank negated its lower highs of the last three weeks. It has to hold above 33,333 for an up move towards 33,750 and 34,000 zones while supports are placed at 33,000 and 32,750 zones,” he said.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)