Tech View: Nifty50 weekly chart suggests loss of momentum; 15,850 to offer support

That said, the index formed an Inside Bar candle on the weekly chart that signals a loss of momentum. Analysts said the index has support around 15,850 levels while they see resistance for the index above 16,200 levels. It’s a sell-on-rise market, they said.

On the daily chart, said Mazhar Mohammad of Chartviewindia.in, said the rally from the lows of 15,183 level appears to be unfolding in a channelled way.

“At yesterday’s intraday low of 15,858 level the index tested the lower end of the said ascending channel and bounced back. Hence, sustaining above the 15,858 level can help the Nifty50 make efforts to consolidate in 15,950-16,275 levels. A close above 16,150 can confirm strength. A close below its 20-day SMA (15,843) can signal the resumption of the downswing that is in progress from the recent high of 16,275,” Mohammad said.

For the index, it closed at 16,049.20, up 110.55 points or 0.69 per cent.

“Nifty50, in the week gone by, stumbled near multiple technical parameters, which were near 16,200. It is hovering near the level of 16,000 for the last few sessions. On the weekly chart, it has formed an Inside bar, which shows a loss of momentum. The near-term support zone for the index is 15,850-15,900. Once that is breached, the index can slidown towards 15,500. From a trading perspective, sell on rise will be the strategy for short-term traders, with reversal above the swing high of 16,275,” said Gaurav Ratnaparkhi of Sharekhan.

Independent Analyst Manish Shah said there seems to be a pause in the upmove that was in place from the 15,216 level. After major reversals, sometimes the recovery can be slow, he said.

“It seems markets are not too keen on declining further. This is a sign of accumulation. Nifty50 needs to move above and hold above 16,050-16,100 to confirm that the low is in,” he said.

Nifty Bank
For the day, the banking index closed at 34,682.65, up 31.45 points or 0.09 per cent.

Chandan

of said the index failed to surpass 34,900 intraday and drifted towards 34,463 in the first half of the session.

“It took support near to its 50 DEMA and closed positive. Yet it continued the formation of lower high- low for the fourth session. Besides, the index formed a high wave candle, giving an early sign of stability. The index has to cross and hold above 34,750 to witness an upmove towards 35,000 and 35,250. They see downside support at 34,450 and 34,250 levels,” Taparia said.

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