Small bullish candle after gapup start signals pause for Nifty50

68287034 68286273 68285061 NEW DELHI: Nifty50 on Wednesday topped the 11,050 mark i n a narrow trade, after briefly testing the 11,000 level. The index made higher highs and lows and traded above most of its moving averages.The support levels shifted higher, but the momentum seen in recent time seemed to be losing steam. The index may see profit taking, as it moves towards its recent swing high at 11,118 level. To avoid it, the index needs to take out the 11,060 level soon. This level is the upper end of a rising channel, which coincides with the 89 per cent Fibonacci retracement level from the recent low of 10,585.“A sustained trade beyond this resistance can lift the index towards the 11,120-11,225 range. However, a failure to cross this range may lead to profit booking, taking Nifty towards 10,980-10,935 levels,” said Aditya Agarwala, Senior Manager, Technical Analysis at YES Securities.Moreover, the RSI on the shorter timeframe chart is approaching the previous bull zone resistance at 80-81, suggesting that the pullback rally is maturing, Agarwala said. For the day, the index settled 65.55 points, or 0.60 points, higher at 11,053. It formed a small bullish candle on the daily chart, despite a gap-up opening. Such a pattern indicates a breather after a sharp upmove, said Nagaraj Shetti of HDFC Securities.“Nifty is currently advancing towards the key overhead resistance at 11,100-125 levels, where one can expect the possibility of profit booking from the highs over next 1-2 sessions,” he said.Short-term traders should close their positions on any close below 10,990, said Mazhar Mohammad of Chartviewindia.in, who believes the index needs to sustain above the 11,062 level on Thursday, before it hits the recent swing high at 11,118.

from Economic Times https://ift.tt/2ITK4PK