HomeBusinessnifty50: Tech View: Nifty forms bearish engulfing candle; index support at 18,080

nifty50: Tech View: Nifty forms bearish engulfing candle; index support at 18,080

NEW DELHI: The Nifty50 on Tuesday noticed promoting strain at its key resistance degree of 18,350, because the index ended up forming a bearish candle on the every day chart that engulfed candles of the final 4 periods. A fall under the 18,100-080 vary could set off additional weak spot, analysts warned.

The index has bridged the bullish hole current within the zone of 18,128 and 18,081, with an intraday low of 18,085 degree.

“Selling may get accentuated if the Nifty50 consistently trades below 18,080 levels. In such a situation, it can head to lower levels with initial targets present around the 50-day exponential moving average, whose value is placed at the 17,600 level. Contrary to this, if the bulls manage to defend 18,080 on a closing basis sideways, consolidation can be expected,” mentioned Mazhar Mohammad of Chartviewindia.in.

Chandan Taparia of Motilal Oswal Securities mentioned that the index had damaged a rising support development line on a every day scale. It wants to carry above 18,081 for an upmove in direction of the 18,250 and 18,350 ranges, Taparia mentioned, including that support for the index exists at 18,000 and 17,900 ranges.

For the day, the index closed at 18,113.05, down 195.05 factors or 1.07 per cent.

“Not only a bearish engulfing pattern, but a bearish harmonic pattern was also visible on the daily chart,” mentioned Rupak De, Senior Technical Analyst, LKP Securities.

The momentum oscillator 14-day RSI entered in a bearish crossover, he mentioned. “On the higher end, resistance is visible at 18,350-18,400, whereas support is visible at 18,000-17,850,” De added.

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