Nifty forms bearish candle as bulls show signs of fatigue at high
Nifty hit an intraday high of 18,777.90, before eventually settling the day at 18,634.55, down 91.85 points or 0.49 per cent. The levels of 18,778-18800 shall act as an immediate hurdle for Nifty, an analyst said.
- Jun 8, 2023,
- Updated Jun 8, 2023 5:44 PM IST
After breaking out from a range in the previous session, the NSE Nifty lost some ground on Thursday, forming a bearish candle and an Outside Bar pattern on the daily chart. The index saw selling pressure near the immediate resistance level of 18,800. Thursday's fall warrants some caution, said analysts who otherwise believe the momentum stays positive for now.
Nifty, said Jatin Gedia of Sharekhan, failed to carry on the positive momentum from the previous trading session, which is a sign of caution from the short term perspective, he said. Gedia said a crucial support range is placed at 18,530–18,500 and as long as this range is held, the uptrend is intact.
The 50-pack index hit an intraday high of 18,777.90, before eventually settling the day at 18,634.55, down 91.85 points or 0.49 per cent. "The levels of 18,778-18800 shall act as an immediate hurdle zone for the Nifty," Gedia said.
Shrikant Chouhan of Kotak Securities said Nifty's long bearish candle indicates weakness from the current levels. In the same breadth he said: "the medium term formation of the index is still in to the bullish side. For traders, as long as the index is trading below 18,725, the technical correction is likely to continue. Below which, the market could slip till 18,600-18,550. Contra traders can take a long bet near 18550 with a strict stop loss at 18520.”
If the Nifty stays above 18,600, the trend may remain sideways-to-positive, said Rupak De of LKP Securities who expects index to face resistant at 18,800-18,900 levels.
"Some sort of pause could be seen at record levels but overall set up remains positive. It formed a Bearish candle and an outside Bar on daily scale. Now it has to cross and hold above 18,666 zone to witness an up move towards 18786 and 18888 zones while on the downside support exists at 18,580 and 18,530 zones," said Chandan Taparia of Motilal Oswal Securities.
After breaking out from a range in the previous session, the NSE Nifty lost some ground on Thursday, forming a bearish candle and an Outside Bar pattern on the daily chart. The index saw selling pressure near the immediate resistance level of 18,800. Thursday's fall warrants some caution, said analysts who otherwise believe the momentum stays positive for now.
Nifty, said Jatin Gedia of Sharekhan, failed to carry on the positive momentum from the previous trading session, which is a sign of caution from the short term perspective, he said. Gedia said a crucial support range is placed at 18,530–18,500 and as long as this range is held, the uptrend is intact.
The 50-pack index hit an intraday high of 18,777.90, before eventually settling the day at 18,634.55, down 91.85 points or 0.49 per cent. "The levels of 18,778-18800 shall act as an immediate hurdle zone for the Nifty," Gedia said.
Shrikant Chouhan of Kotak Securities said Nifty's long bearish candle indicates weakness from the current levels. In the same breadth he said: "the medium term formation of the index is still in to the bullish side. For traders, as long as the index is trading below 18,725, the technical correction is likely to continue. Below which, the market could slip till 18,600-18,550. Contra traders can take a long bet near 18550 with a strict stop loss at 18520.”
If the Nifty stays above 18,600, the trend may remain sideways-to-positive, said Rupak De of LKP Securities who expects index to face resistant at 18,800-18,900 levels.
"Some sort of pause could be seen at record levels but overall set up remains positive. It formed a Bearish candle and an outside Bar on daily scale. Now it has to cross and hold above 18,666 zone to witness an up move towards 18786 and 18888 zones while on the downside support exists at 18,580 and 18,530 zones," said Chandan Taparia of Motilal Oswal Securities.