Tech View: Nifty50 forms a small bearish candle, but support stays intact

NEW DELHI: NSE Nifty on Thursday formed a small bearish candle, with a lower wick on the daily chart, suggesting selling during the day was partly bought into. The index recovered after breaching its immediate support of 12,150, but the advance-decline ratio remained in favour of the bears.

For the day, the index closed at 12,174.65, down 26.55 points or 0.22 per cent.

“The 78.6 per cent retracement of the decline from 12,430 to 11,614 i.e. 12,255 and the swing high of 12,272 forms a crucial hurdle zone, said Gaurav Ratnaparkhi of Sharekhan.

Chandan Taparia of Motilal Oswal Securities said that the support for the index is intact at lower levels, which may attract buying interest on declines.

The index, he noted, gave a consolidation breakout on Wednesday, but followup buying was missing to drive the momentum.

“Nifty needs to hold above 12150 to witness an upmove towards 12,280 and then 12,350, while major support has shifted to 12,000,” Taparia added.

Manav Chopra of Indiabulls Ventures advised ‘buy on dips’ approach. “Till 11,990 is not breached on the downside, Nifty is likely to head higher towards 12,450,” he said.

Mazhar Mohammad of Chartviewindia.in advised traders to remain ‘neutral’ for the time being as trend looks indecisive and technical setup generates mixed signals.