Tech View: Nifty50 forms indecisive doji; analysts are unsure of the impending recovery

Nifty50 on Friday it fell for the sixth day in a row and formed an indecisive Dodge candle on the daily chart. In the weekly rock he forms a long sword candle. Analysts aren’t sure if there can be any recovery from here. The trend remains negative for now, they said.

Sameet Chavan from

said the index fell below ’89 -EMA ‘for the first time since July 2020 on the weekly time frame chart and this should be interpreted as a breakdown, which does not bode well for the bulls.

On the other hand, the Nifty50 is exactly at the previous breakthrough point of May 2021, which is around 15,400-15,300. lower low levels in recent prices and higher low levels of the oscillator. This condition usually occurs at the end of any downward trend. Therefore, looking at the graphs, we are obviously in two thoughts at the moment, “he said.



For the day the index closed at 15,293.50 points, down 67.10 points or 0.44%.

Gaurav Ratnaparhi of Sharehan said the index had tried to bounce several times during the day, but could not pass the 15,400 level. He said the overall structure suggested the index could test lower levels in the next session.

The short-term target area continues to be fixed at 15,100-15,000.

“On the higher side, the 15,400-15,500 zone is expected to control any slight deviation in the degree,” Ratnaparhi said.

A look at the weekly charts shows that this was a week in which sellers broke the backs of buyers and won a significant position, said independent analyst Manish Shah.

Nifty has short-term resistance at 15,370-154.00, a break above 15,400 will mean a rally to 15,700 – the area from which Exquisite it broke. On the other hand, a break below 15,200 will bring down the Nifty50 to 15,000-14,900. We will accept every day as it comes. Expect volatility to be high, “Shah said.

Exquisite bank

Chandan

from angel broking said the index outperformed the wider market and is relatively resilient to nifty50. The index forms a bullish candle on a daily scale with buying based on support in the lower areas, but forms a bearish candle on a weekly basis.

“As long as it stays below 33,000, a weakness of 32,250 and 32,000 can be seen, while obstacles are set at 33,333 and 33,500,” he said.

(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. They do not represent the views of the Economic Times)

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