nifty50: Tech View: Nifty50 forms bearish candle; index may see consolidation ahead

The adverse candle had a minor higher and decrease shadow. Technically, such a candle signifies a completion of current uptrend and a starting of quick time period downward correction from the excessive in response to Nagaraj Shetti of

Securities.

For the day, the index closed at 16,631, down 88.45 factors or 0.53 per cent.

“The quick time period uptrend of Nifty50 appears to have reversed down from close to the necessary resistance of 16,800 stage. The general chart sample signifies additional weak point right down to 16,350-16,300 ranges within the subsequent few classes. Intraday resistance to be watched at 16,700 stage,” Shetti mentioned.

Nifty50 is dealing with a barrier at 16,750-16,800, mentioned Impartial Analyst Manish Shah.

Nifty50 wants to interrupt out of this barrier and as soon as this occurs Nifty50 ought to see extra upsides in direction of 17,100-17,250, he mentioned, including that so long as the assist of 16,480-16,450 holds, the optimistic pattern stays intact.

Gaurav Ratnaparkhi, Head of Technical Analysis at Sharekhan mentioned that the index was buying and selling close to the higher finish of a rising channel for the previous three classes. The index was inching increased together with the higher channel line as it’s an upward sloping channel, he mentioned.

“Nonetheless, the Nifty50 is now parting from that higher channel line on the draw back. The index appears to have stepped into a brief time period consolidation. The hourly momentum indicator developed a adverse divergence, which can also be suggesting the identical. Structurally, the index can witness a short consolidation within the vary of 16,480-16,750 within the coming classes,” Ratnaparkhi mentioned.

Nifty Financial institution

Nifty Financial institution shaped a small-bodied Bearish candle on the day by day scale and has been forming increased high-low for the final six classes.

“It has to carry above 36,666 to witness an up transfer in direction of 37,000 and 37,250 whereas on the draw back assist exists at 36,500 and 36,250 ranges,” mentioned Chandan

of Securities.

(Disclaimer: Suggestions, solutions, views, and opinions given by the consultants are their very own. These don’t symbolize the views of Financial Occasions)