Chartviewindia.in’s Mazhar Mohammad said that despite the strong gap-up opening, Nifty50 recorded an indecisive Hanging Man candle. He said that the candle’s shadow should have been slightly longer in order to be considered a perfect Hanging Man candle.
“The index was largely within a 50 point range throughout the trading sessions. This can be cause for concern. The bulls can target its 200-day EMA, whose value is around the 16,550 level, as the index passed its critical threshold of 16,172. It is crucial that the index maintains above 16,157 levels, as any close below that level can cause some weakness. An initial target of 16,045 – 16,011 level was set,” he stated.
The index closed at 16,220.60 for the day, an increase of 87.70 points or 0.54 percent.
“Nifty50 maintained above the important resistance of June 13th at 16,170 level, and closed higher. The opening downside gaps had not been closed decisively to the upside in the previous few months. Nagaraj Shetti (Technical Research Analyst at Nifty50) stated that if Nifty50 is able to maintain above 16,200 levels and move up over the next 1-2 session, it could signal a significant trend reversal for Nifty50 as per smaller timeframe charts.
Gaurav Ratnaparkhi (Head of Technical Research at Sharekhan) stated that the index has filled in a gap created by the June decline. It now reaches a critical junction.
“The NSE barometer reached its daily upper Bollinger band as well the upper end a rising channel. The Fibonacci Retracement has shown that it has done just 61.8 per cent of June’s fall. This level of sustainability will be critical to determining whether the upmove can continue. Ratnaparkhi stated that Nifty50 could reach 16,500 if it crosses the July 8 high of 16,275.
An analyst indicated that a fall below 16,200 could lead to a shift towards 16,050-16,000.
(Disclaimer – The opinions, recommendations, views and suggestions of the experts are theirs. These views do not reflect those of Economic Times.