Tech View: Nifty kinds bearish candle, could consolidate between 8,900 & 9,300

NEW DELHI: Nifty on Wednesday noticed promoting stress on the higher finish of a bearish Wedge sample. From an intraday excessive of 9,261 stage, the index finally closed beneath the 9,000 stage, forming a bearish candle on the every day chart. Analysts stated the index could consolidate between 8,900 and 9,300 ranges within the subsequent few periods.

Aditya Agarwala of YES Securities stated a sustained commerce beneath the 8,900 stage will prolong Nifty correction to eight,800 and eight,710 ranges. He sees resistance at 9,000 stage.

“A trade beyond this resistance can trigger a short-covering rally to 9,130 and 9,300 levels,” he stated. For the day, the index fell 68 factors, or 0.76 per cent, to eight,925.

“Weakness will be confirmed on a close below 8,792 level, which shall accentuate the selling pressure in Nifty by confirming an interim top around the 9,261 level,” stated Mazhar Mohammad of Chartviewindia.in

The index has been forming a distribution for the reason that final 3-Four periods, stated Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan. On the upside, he stated, the resistance zone is at 9,300-9,400 which coincides with the 38.2 per cent retracement of the January-March fall.

“Thus unless it takes out the 9,300-9,400 range on a closing basis, Nifty is not expected to resume the larger downtrend. The 8,650-8,500 range will be the initial target area on the downside,” he stated.