Tech View: Nifty Doji forms candle; consolidation in progress

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nifty 50 Selling pressure was seen near the 15,900 level on Thursday as it finally closed near its opening levels, forming a long legged Doji on the daily chart. Such a candle indicates indecision among traders. Analysts said the index needs to move out of the 15,600-900 range for a directional move.

Technical Research Analyst Nagraj Shetty said, a Doji is usually formed after a downtrend or an uptrend signal, which indicates a reversal of the trend.

securities. But, the current Doji formation within a range movement has low predictive value, Shetty said.

“After the formation of a false upside breakout at 15,800 level on June 27, the absence of any sharp weakness near the barrier in the last three sessions could favor a return from the lows of the bulls. But, any decisive move will be taken by Shetty. Said, bullish bets below 15,600 level are likely to be rejected and result in sharp weakness towards 15,200 level.



For the day, the index ended 18.85 points or 0.12 per cent lower at 15,780.25. The session witnessed some volatility due to the expiry of June futures and options contracts.

Independent analyst Manish Shah said traders should be careful as Nifty 50 may break below 15,600 and go down to June 15,250 low. nifty Very delicately prepared at current levels, he said.

“The index saw light selling pressure from an intraday high of 15,890 after testing its 20-day SMA, which has been placed near 15,870 levels. However, the last four sessions of price action appeared to be consolidating within the 15,900 range. and 15,700 levels. Therefore, a directional move is unlikely to emerge unless the index breaks out of this range,” said Mazhar Mohamed of chartviewindia.in.

Shrikant Chauhan of Kotak Securities said that the index is witnessing non-directional movement since last three sessions. He added that 15,700 could be the key support level for Nifty 50 and 15,900 would act as an important resistance zone.

“As long as Nifty 50 is able to hold its head above 15,700, there are more chances for it to move towards 15,900-16,000 levels. There, it will face resistance area of ​​15,900-16,200, due to a gap Overall, the market may trade with a bullish intent as long as it is trading above the 15,700 level, says Milan Vaishnav, Gemstone Equity Research.

Nifty Bank

Nifty Bank opened negative but managed to maintain its opening levels and remained confined for most of the day. However, Chandan said

Of the securities, the index could not come close to its day’s high of 33,659 made on an opening tick.

“This is even when it respected its support of 33,333. The index formed a Bullish Belt Hold candle on a daily frame with a slightly longer upper shadow. Now, it needs to move above 33,333 towards 33,750 and 34,000 whereas Support has been placed in the 33,000 and 32,750 zones,” the brokerage said.

(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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