Nifty: Tech View: Nifty forms indecisive candle; a pause can’t be ruled out

NEW DELHI: Nifty50 on Friday formed an indecisive candle on the daily chart, but a strong bullish candle on the weekly scale. Analysts said the index could see a pause in momentum in the coming days, following the recent spurt. They said the 18,300 level would act as a key resistance at highs and suggested booking partial profits in the 18,100-18,200 range. The 17,800-775 levels could offer immediate support to Nifty50, they said.

Mazhar Mohammad of Chartviewindia.in said Nifty50 might have seen a fresh leg of upswing from the recent low of 17,326 level, and a pause cannot be ruled out.

“If Nifty50 slips below the 17,800 level in Monday’s session, some mild correction towards its near-term critical support range of 17,646-610 is likely. This support region is nothing but a bullish gap registered on September 23. A dip into the 17,750-700 region can be a comfortable buying opportunity. If Nifty50 clears the 17,950 level, a higher target towards the 18,300 level can be expected,” Mohammad said.

For the day, the index closed at 17,853, up 30.25 points or 0.17 per cent.

Shrikant Chouhan of Kotak Securities said the index has been making higher high-low formation on the daily chart, which is broadly positive.

“The 17,775-17,700 range could offer immediate support. On the flip side, the 18,000 and 18,200 levels could act as a major resistance. Partial profit booking is advisable at 18,100-18,200 levels,” Chouhan said.

On the weekly scale, the index has been forming higher high-low for eight weeks now, said Chandan Taparia of Motilal Oswal Securities. Taparia said the index has to continue to hold above 17,777, for an upmove towards 18,000 level. He sees support for the index at 17,700 and 17,500 levels.