The Nifty50 took a breather on Tuesday and edged lower after a six-day winning streak. The index negated the formation of higher highs and higher lows that it had made in last five sessions and formed an indecisive Doji on the daily chart.
This was also the third day when the index could not end higher from its opening level.
On a 60-minute timeframe, the index has been forming lower highs, taking support in the 10,845-40 range, which indicates the possibility of some more weakness next session, said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
For the day, the index fell 14.25 points, or 0.13 per cent, to close at 10,869. The index has to hold the crucial support in the 10,777-10,800 range to extend its move towards THE 10,929 level, said Chandan Taparia of Motilal Oswal Securities.
This was also the third day when the index could not end higher from its opening level.
On a 60-minute timeframe, the index has been forming lower highs, taking support in the 10,845-40 range, which indicates the possibility of some more weakness next session, said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
For the day, the index fell 14.25 points, or 0.13 per cent, to close at 10,869. The index has to hold the crucial support in the 10,777-10,800 range to extend its move towards THE 10,929 level, said Chandan Taparia of Motilal Oswal Securities.
On the downside, support is seen at 10,777 and then 10,650 levels. The momentum oscillators on lower time frame charts generated a sell signal, which is a cause for concern, said Mazhar Mohammad of Chartviewindia.in.
“After RBI’s policy outcome, if the index fails to rally beyond 10,950, it can be a sign of near-term weakness for the market. A short-term breakdown will be confirmed on any close below the 10,747 level. There may not be a compelling low-risk trading opportunity even after the money policy. Traders are advised to remain extremely stock specific with a neutral bias,
“After RBI’s policy outcome, if the index fails to rally beyond 10,950, it can be a sign of near-term weakness for the market. A short-term breakdown will be confirmed on any close below the 10,747 level. There may not be a compelling low-risk trading opportunity even after the money policy. Traders are advised to remain extremely stock specific with a neutral bias,
Nifty hovered between 100-DMA and 200-DMA levels for the fourth day in a row.
"The key market internals remained below equilibrium. Considering the above developments, rallies towards 10,950-11,100 should be used to reduce speculative long positions,” said Arun Kumar, Market Strategist at Reliance Securities.
"The key market internals remained below equilibrium. Considering the above developments, rallies towards 10,950-11,100 should be used to reduce speculative long positions,” said Arun Kumar, Market Strategist at Reliance Securities.
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