Consolidation continues within a tight range: Angel Broking
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Market Wrap-up by Mr. Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking): The global markets witnessed some correction and in line with that, SGX Nifty was hinting at a probability of negative opening. However, the indices opened on a flat note and then corrected in the first couple of hours upto 13450 mark. But once again, the intraday day dip got bought into and we then witnessed a smart recovery in the later half to erase all losses and end the day on a flat note.
Once again our markets shrugged off the negative global cues and witnessed a smart recovery from the intraday dips. In the last couple of hours, we witnessed a decent upmove with certain high beta stocks posting good gains. For the fourth straight session, we have witnessed such a move where markets recovered from their lows and ended with formation of Doji candle. Although this does not sign any reversal of the trend, 13400
NEW DELHI: Nifty50 on Tuesday tested its immediate support range at 13,450-470, before recovering and closing in the black. With this, the index formed an indecisive Doji candle on the daily chart for the fourth consecutive day. The bulls seem to be defending the support levels rigorously, but the upside seems limited, analysts said.
“The bulls are constantly protecting the 13,400-13,450 zone in intraday declines. On the upside, the bears are protecting the 13,550-13,600 zone. Moreover, multiple Doji and Hanging Man candlestick patterns on the daily chart suggest lack of momentum in the uptrend. A trade below 13,400 level may trigger sharp corrections in Nifty to 13,200-13,100 levels. The RSI is also suggesting lack of momentum on the upside, said Aditya Agarwala, Senior Technical Analyst at YES Securities.
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