Technical View: Bulls took control over D-St; Nifty forms a bullish candle
Bulls took control of D-Street from bears and pushed the index firmly above 10,700 levels but failed to close near day’s high on Wednesday. A breakout above 10,785 or a breakdown below 10,600 levels will confirm the next directional move for markets.
The Nifty50 formed a bullish candle after forming a bearish candle on the daily candlestick charts on Tuesday. Investors are advised to remain neutral on markets and adopt a stock specific approach.
The Nifty50 which opened at 10,693.35 rose to an intraday high of 10,766.25. It slipped below its 5-DEMA to hit an intraday low of 10,689.85. It finally closed 23.90 points higher at 10,741.70.
“Albeit Nifty50’s price action appears to be somewhat positive, its inability to get past its recent corrective swing high of 10784 is clearly suggesting that market is adopting a cautious stance and may remain range bound for a couple of sessions going forward,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
“Hence, traders should not be surprised even if Nifty50 revisits the recent low of 10,600 levels but its breach on closing basis shall enhance selling pressure on the indices,” he said.
Mohammad is of the view that unless the critical resistance point of 10784 is cleared decisively in next couple of sessions, traders should not expect a directional move till the event is out of the way. Hence, it looks prudent to remain neutral on the markets by adopting the stock-specific approach.