On the weekly scale, the NSE barometer formed a bullish candle for the second straight week. Though yet to be confirmed on charts, analysts said there are good chances of a downtrend in the coming days.
Mazhar Mohammad of Chartviewindia.in said the daily candle resembled a ‘Bearish Belt Hold’ formation and that the price action since August 19 appears to be unfolding like a ‘Flat’ in Elliot wave parlance with three moves on the downside and another three in the counter-trend direction.
“If this observation holds true, sooner than later, a downswing should unfold, with eventual targets present below 17,166 level, though confirmations are awaited in this regard. Nevertheless, to regain the upper hand, the bulls initially need a close above 17,992 levels and ultimately beyond 18,114 levels to decisively catapult the medium-term trend in their favour,” he said.
For the day, the index closed at 17,833.35, up 34.60 points or 0.19 per cent.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan said unless the 18,000 level is surpassed, Nifty50 is expected to stay in the consolidation mode next week.
“The internal structure shows that the index is preparing for a down move. It is expected to test 17,500 in coming sessions. The broader market indices are also poised to consolidate their recent gains,” he said.
Nagaraj Shetti, Technical Research Analyst at
Securities, said Nifty50’s weekly bullish candle suggested that the index made an attempt of an upside breakout of down sloping trend line around 17,800 level.
“An inability to show follow-through buying from here could mean the possibility of minor downward correction for the market ahead,” he said.
For the day, Nifty Bank closed at 40,415.70, up 206.75 points or 0.51 per cent.
of said the index formed a small-bodied Bearish candle on the daily scale and gave its highest closing of the last 216 trading sessions. It formed a Bullish candle on the weekly scale and gave its highest ever weekly close, he noted.
“Now it has to hold above 40,250, for an up move towards 40,750 and 41,000 whereas supports are placed at 40,000 and 39,750 zones,” the analyst said.
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