Tech View: Nifty forms Bearish Belt Hold pattern; showing fatigue

NEW DELHI: Nifty fell from the word go on Monday but settled the day a tad below 12,050, forming a Bearish Belt Hold pattern on the daily chart.

Notwithstanding weak breadth and visible signs of fatigue, a few analysts thought the broader trend remained intact, but the index may need to breach the 12,150-70 range for any strong action.

The hourly chart revealed that the price action over the last few sessions has resulted in a triangle formation, said Gaurav Ratnaparkhi of Sharekhan.

“The index on Monday found support near the lower end of the pattern and formed a base over there. It looks poised for a leap towards the upper end of the pattern, which is near the 12,100-12,110 zone,” he said.

“The trend may become bullish, once it crosses above the 12,150 level,” said Amit Shah of Indiabulls Ventures. “In such a case, Nifty can move swiftly to 12,400.”

For the day, the index closed at 12,048, down 7.85 points or 0.07 per cent. A critical support for index is placed around the 13-day exponential moving average (EMA), whose supporting value for the next session is placed around the 12,006 mark, said Mazhar Mohammad of Chartviewindia.in.

“Any upside should remain capped at 12,160 level unless Nifty sees a strong breakout above that level,” he said.