Tech View: Nifty chart shows bearish reversal; what traders should do on Friday
Nifty 50 ended marginally higher on Thursday, but the session witnessed volatility amid bouts of profit booking. The 50-stock index ended 0.4% higher at 22515 points.
On the daily chart, the index has formed a hanging man pattern, indicating a potential bearish reversal in the short term, said Rupak De, senior technical analyst at LKP Securities.
“Immediate support is positioned at 22,300; a decisive drop below this level could lead the index towards 22,000-21,900 in the short term. On the upside, resistance is observed at 22,600-22,650,” the analyst said.
Here’s what other analysts are saying about the near-term market trajectory:
Jatin Gedia, technical analyst, Sharekhan by BNP Paribas
The Nifty is heading towards the upper end of the rising channel placed at 22,700. On the downside, the zone of 22,350–22,300 shall act as a crucial support from a short-term
perspective. Minor degree pullbacks towards support zones should be used as a buying opportunity.
Osho Krishan, senior analyst — technical & derivative research, Angel One
The Nifty 50 started the session with a notable gap up, but failed to sustain the higher ground and slipped to the week’s low of 22,300. However, a smart recovery from the bulls in the latter half helped the index recoup losses and inch above the pivotal zone.
As we head into uncharted territory, sustainability is the primary concern, and the participation of broader markets is highly considered.
From a technical point of view, the closure around the pivotal zone 22,500 and a
