The index would face resistance at 9,970 on an immediate basis on shorter timeframes, while support is at 9,870 level. NEW DELHI: The Nifty50 consolidated on Thursday and formed a candle similar to ‘Spinning Top’ on the daily chart, suggesting indecisiveness among investors.
The index may continue to see lacklustre trade and the consolidation phase may extend going ahead, unless it sees a breakout of the 9,950-9,990 range decisively, they said.
“The Nifty50 continued its lackadaisical price behaviour as it moved in an extremely narrow range before signing off the day with a Spinning Top-like indecisive formation. The trend in the near term shall continue to remain directionless, unless the indices break out of the 9,988-9,861 range. Traders are advised to watch Bank Nifty as it failed to cross the interim top at 24,496 level,” said Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory at Chartviewindia.in.
At close, the Nifty50 rose 13.70 points, or 0.14 per cent, to 9,929. Mohammad advised traders to put a tight stop loss below 9,861 for their long positions.
Chandan Taparia of Motilal Oswal Securities said the index is stuck in the 9,850-9,980 range for the past seven sessions. “It has to continue to hold above 9,928 level to witness a bounce towards 9,980, while on the downside supports are seen at 9,880 and then 9,850 levels,” he said.
Mustafa Nadeem, CEO at Epic Research, said the index would face resistance at 9,970 on an immediate basis on shorter timeframes, while support is at 9,870 level.
“Either way breaking will give us a trading opportunity while between this we remain neutral as the market itself suggests that,” Nadeem said.