The Nifty50 on Friday formed a double Inside Bar pattern on the daily scale, reflecting indecision. On the weekly scale, the index formed a bullish candle with an upper wick, reflecting selling at highs. Analysts said the index might keep trading in a consolidation phase unless it breaches 17,300-800 range decisively.

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan, said the price action for the last 2-3 weeks shows that the index is in a short-term consolidation phase.

“It is witnessing sideways action below a crucial falling trendline. The daily Bollinger Bands have started contraction, which suggests that the consolidation is likely to continue going ahead. In terms of the price patterns, the Nifty formed a Double Inside bar on the daily chart. Developments on the lower time frame indicate that the Nifty is gearing up for a down move within this short-term consolidation. With the next move down, the index can test 17,200 on the downside. On the higher side, 17,700-17,780 is acting as a key resistance zone.”

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Independent analyst Manish Shah said the price pattern visible in Nifty50 is a Flag, which is considered to be a trend continuation pattern. Also, Nifty50 is showing an AB=CD trend continuation pattern, he said.

“The index needs a push above 18,100 for a rally to truly blossom and once this happens, it will be a one-way ride to 18,600-18,900. There could be a lot of choppiness between 17,900 and 17,600.

It is better to have a longer holding period and smaller position size and wait for that moment when Nifty50 could gap up and stay elevated for a prolonged period,” Shah said.

For the day, the index closed at 17,539.45, down 3.35 points or 0.02 per cent.

Nagaraj Shetti, Technical Research Analyst at

Securities, said Nifty’s short-term trend remains choppy.

The market is now placed within a broader range of 17,800-17,300 levels and the movement within this range is likely to continue for next week, he said.

“One may expect selling pressure building from the highs around 17,800 levels and the buying is likely to emerge from the lows of 17,300 levels. Hence, the market action could be a buy on dips and sell on rise opportunity for the near term,” he said.

Nifty Bank

The banking index closed the day at 39,421, up 119.75 points or 0.3 per cent. “Price action in the last two weeks shows an ascending triangle pattern which is a trend continuation pattern. The index needs a push above 39,600-40,000 for the rally to continue,” Shah added.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)