Some momentum oscillators are suggesting that the upmove in the short term is stretched and needs a pause whether through a corrective downswing or by a sideways move, said Mazhar Mohammad of Chartviewindia.in.
“It remains critical for Nifty50 to sustain above the 18,163 level to retain positive bias. In that scenario, it can head towards the 18,342 level whereas a close below 18,080 may invite short-term correction. For the time being, fresh long positions should be avoided,” he said.
For the day, Nifty50 closed at 18,257.80, up 45.45 points or 0.25 per cent.
Independent Analyst Manish Shah said, the sizes of the candle bodies are progressively reducing, as Nifty50 is approaching its all-time high of 18,640.
“The zone at 18,640-18,700 could be a major barrier. At this juncture, Nifty50 is getting overextended and this is shown by high reading on RSI. The overbought zone may mean that there could be a corrective decline coming in. Traders should exercise caution at this level. Support for Nifty50 is at 18,000-18,060,” he said.
Shrikant Chouhan of Kotak Securities said the bulls are showing signs of fatigue. The ‘Doji’ candlestick is indicating indecisiveness among the bulls and the bears. “However, the medium-term texture is still positive. Any fall to 18,200 can attract profit booking and post breakdown, chances of the index hitting 18,140-18,100 levels are high. As long as Nifty is trading above 18,200, the uptrend will continue till 18,300-18,350,” Chouhan said.
