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Mazhar Mohamed of chartviewindia.in said that Nifty 50 registered an uncertain hanging man candle despite strong gaps. He added that the lower shadow of the candle should have been slightly longer to qualify as a perfect ‘Hanging Man’ candle.
“Throughout the trading session, the index remained largely within the 50-point range, which could be a cause for concern. As the index closed above its crucial hurdle of 16,172 level, the bulls were targeting their 200-day EMA. Price is placed near the level of 16,550. Meanwhile, it is important for the index to stay above the level of 16,157 as an initial target below that level is placed in the zone of 16,045 – 16,011 level.
The index for the day closed 87.70 points or 0.54 per cent higher at 16,220.60.
“Nifty50 remains above the crucial resistance level of 16,170 from the previous Opening Down Gap on 13th June and closed higher. Prior to this, no Opening Downside Gap has been drawn conclusively upwards in the last few months. If Nifty 50 manages to stay above 16,200 level and on an upside in next 1-2 sessions, it could mean a significant trend reversal for Nifty 50 as per short and large time frame charts,” said Nagaraj Shetty, Technical Research Analyst, said
securities.
Gaurav Ratnaparkhi, head of technical research at Sharekhan, said the index has filled a gap zone that was created during the June slump and has now reached a critical juncture.
“The NSE barometer has reached the upper end of an ascending channel along with its daily upper Bollinger Bands. In terms of Fibonacci retracement, it has outperformed a little over 61.8 per cent of the June decline. Thus, there will be stability at this level. Ratnaparkhi said, be important to determine further expansion.
On the other hand, a move towards 16,050-16,000 is likely if it falls below 16,200, said the analyst.
(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. They do not represent the views of The Economic Times)
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