NEW DELHI: The Nifty50 took a breather on Tuesday, even as it extended its winning streak to a third session. The index seems to have lost momentum and formed a small bearish candle on the daily scale, even as every decline triggered buying interest.
A small-body negative candle was formed at the new closing high. Technically, this indicates a choppy trend in the market, says Nagaraj Shetti at HDFC Securities.
The 50-pack index edged 2.35 points, or 0.02 per cent, higher to end the day at 11,389, its new closing high.
The underlying short-term trend remains rangebound, and this choppy trend is expected to continue in the next session, Shetti said.
“The 11,370 level remains crucial to watch out for and any violation of this will trigger further profit booking and take the index towards 11,340 and 11,300 levels. On the upside, an immediate resistance is placed around 11,400 and any sustainable move above this will give Nifty strength to move towards 11,430 and 11,460 levels,” said Rajesh Palviya, Head of Technical & Derivatives Analyst of Axis Securities.
Strength indicator RSI showed strength but momentum indicator Stochastic is in the negative zone, indicating a slowdown in momentum.
Chandan Taparia of Motilal Oswal Securities believes the index may need to hold above 11,350 to extend its move towards 11,435 and 11,500 levels. On the downside, major support is seen at 11,250 level, the analyst said.
Mazhar Mohammad of Chartviewindia.in advised traders to remain cautiously optimistic and shift focus to stock-specific opportunities. If the index trades below 11,359 for at least one hour in Wednesday’s session, a correction shall get extended initially towards 11,280 level, Mohammad said.
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