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NEW DELHI: Nifty50 on Monday formed a bearish candle on the daily chart with an upper wick, suggesting selling at higher levels.

During the day, the index tested the 16,400 level. This is the level where the index had faced resistance in the last two weeks, said analysts who believe the index may be in for a range-bound action in coming sessions.

“The 16,400 level proved to be a strong barrier yet another time. The hourly chart shows that the upper end of an upward sloping channel also created pressure near 16,400. The overall structure shows that the Nifty50 is likely to witness sideways action in the short term. The 16,000-16,400 is expected to be the range for the next few sessions,” said Gaurav Ratnaparkhi at Sharekhan.

For the day, the index closed at 16,214.70, down 51.45 points or 0.32 per cent.

Shrikant Chouhan of Kotak Securities said the Nifty50 formed a double top formation on intraday charts, and on daily charts, it has formed a ‘Hammer’ candlestick formation that is broadly negative.

“For day traders, 16,200 would act as a crucial support level, and below the same, we could see a quick intraday correction till 16,100-160,50. On the flip side, a fresh uptrend is possible only after a 16,300 intraday breakout. On breaching the level, the index could move up to 16,400-16,475,” Chouhan said.

Nifty Bank

Chandan of Securities said the index formed an Inside Bar and a Bearish candle on a daily scale. Till it holds below 35,500 zones, Taparia said, weakness could be seen towards 35,000 and 34,750 levels. Resistances are placed at 35,750 and 36,000 levels, he said.


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

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