Nifty Forms a ‘Doji’ Pattern, Uptrend may Lose Strength
Provide a decent support for today’s trading session, whereas 8969 remains an immediate hurdle; index could hit 52-week high soon: expert
at the bottom.
“Overall the immediate trend may remain positive until the index doesn’t break its trend line support of 8820. Now it has to hold above 8888 to extend its up move towards 8968 and 9000. The downside supports are seen at 8850 and 8820,” said Chandan Taparia, associate vice-president at Motilal Oswal Securities.
Nifty traded positive in the pre-open session. It opened marginally higher, but rallied later, supported by buying in i ndex heavyweight Reliance Industries. The index closed the day at 8926.90, up 19.05 points, or 0.21%. MACD line on Wednesday still stood at signal line. It needs a confirmed cross above the latter to send buy signal.
“We still maintain our positive bias with a directional view and expect the index to hit a new 52-week high soon. For the coming trading session, 8905-8874 would provide a decent support, whereas 8969 remains to be an i mmedi a t e h u r d l e. Surpassing this level would unfold possibility of a new high soon. That said, Thursday being the day of February month derivatives expiry, we would expect some volatility in the market,” said Sameet Chavan, chief analyst, technical and derivatives at Angel Broking. Mazhar Mohammad, chief strategist, technical research and trading advisory at Chartviewindia.in noted that some of the momentum oscillators are displaying negative divergences, while some are now also lying in overbought zones.
“All the technical indicators are suggesting not only limited upsides, but pointing towards a correction around the corner. We recommend traders to book profits and remain sidelines for next trading session,” Mazhar said.