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

The Economic Times - - Smart -

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 Chartviewin­ 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.

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