Tech View: Nifty50 forms indecisive Doji; analysts unsure of recovery ahead

Sameet Chavan of

said that the index fell below ’89-EMA’ for the first time after July 2020 on the weekly time frame chart, and that needs to be construed as a breakdown, which does not augur well for the bulls.

“On the flip side, the Nifty50 is exactly placed at the previous breakout point of May 2021, which is around 15,400 – 15,300. The ‘RSI-Smoothened’ oscillator on the daily chart is showing a ‘Positive Divergence’ i.e. lower lows in recent prices and higher lows in the oscillator. This condition generally happens at the fag end of any downtrend. Hence, looking at the charts, we are clearly in two minds at this juncture,” he said.

For the day, the index closed at 15,293.50, down 67.10 points or 0.44 per cent.

Gaurav Ratnaparkhi of Sharekhan said the index attempted an intraday bounce multiple times but couldn’t cross the level of 15,400. He said the overall structure suggests that the index can test lower levels in the coming sessions.

The short-term target area continues to be pegged at 15,100-15,000.

“On the higher side, the 15,400-15,500 zone is expected to keep any minor degree bounce in check, ” Ratnaparkhi said.

A look at weekly charts does suggest that it was a week where sellers have broken the back of buyers and have gained significant ground, said independent Analyst Manish Shah.

“Nifty has a short-term resistance at 15,370-154,00, a break above 15,400 will mean a rally to 15,700 — the zone from where Nifty broke down. On the flip side, a break below 15,200 will take Nifty50 down to 15,000-14,900. We will take each day as it comes. Expect volatility to be high,” Shah said.

Nifty Bank

Chandan

of Angel broking said the index outperformed the broader market and was comparatively resilient to Nifty50. The index formed a Bullish candle on daily scale with support-based buying at lower zones, but formed a Bearish candle on weekly frame.

“Till it holds below 33,000, weakness may be seen towards 32,250 and 32,000 whereas hurdles are placed at 33,333 and 33,500,” he said.

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