Mazhar Mohammad of Chartviewindia.in said despite a strong gap-up opening, Nifty50 registered an indecisive Hanging Man-like candle. The lower shadow of the candle should have been slightly longer to qualify as a perfect ‘Hanging Man’ candle, he said.
“Throughout the trading sessions, the index remained largely inside a 50-point range, which can be a cause for concern. As the index closed above its critical hurdle of 16,172 level, the bulls can aim at its 200-day EMA whose value is placed around the 16,550 level. In between, it is critical for the index to sustain above 16,157 levels as a close below that level can induce some weakness with an initial target placed in the zone of 16,045 – 16,011 level,” he said.
For the day, the index closed at 16,220.60, up 87.70 points or 0.54 per cent.
“Nifty50 sustained above important resistance of the previous opening down gap of June 13 at 16,170 level and closed higher. Previously, none of the opening downside gaps have been taken out decisively on the upside in the last couple of months. If Nifty50 manages to stay above 16,200 levels and moves up in the next 1-2 sessions, that could mean an important trend reversal on the upside for Nifty50 as per smaller and larger timeframe chart,” said Nagaraj Shetti, Technical Research Analyst at
Securities.
The index has filled up a gap area that was created during the June decline and has now reached a crucial junction, said Gaurav Ratnaparkhi, Head of Technical Research at Sharekhan.
“The NSE barometer has reached its daily upper Bollinger Band as well as the upper end of a rising channel. In terms of the Fibonacci retracement, it has done little more than 61.8 per cent of the June fall. Thus, sustainability at this level will be crucial to determine further extension in the upmove. If Nifty50 crosses July 8 high of 16,275, it can head towards 16,500 in the short term,” Ratnaparkhi said.
On the flip side, a move towards 16,050-16,000 is likely on a fall below 16,200, the analyst said.
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