Nifty eventually ended up forming an Inside Bar pattern on the daily chart. This pattern appeared after a long bearish candle on Monday. Analysts said the 14,600 level may continue to support the index. Upside hurdles are now seen in the 14,850-14,900 zone, they said.
“The bulls tried to push the index higher, but they could not make much headway. Nifty has to hold above the key support in the 14,650-14,600 zone, else it could drop further down to the 14,450-14,400 zone,” said independent analyst Manish Shah.
“The safest place for the bulls to assert supremacy would be above 14,950 level on a strong momentum candle. February F&O expiry could be a low volatility affair,” Shah said.
For the day, Nifty closed at 14,707, up 32.10 points or 0.22 per cent. During the day, the index attempted to climb above the 20-DMA. It, however, could not sustain at higher level.
“That said, the bulls managed to defend the February 22 low of 14,635. As a result, the index formed an Inside Bar on the daily chart. The hourly chart showed the sideways action can continue for a couple of sessions. On the higher side, a bounce towards the 14,850-14,900 zone can be taken as a selling opportunity. The short-term target on the downside stands at 14,400 level,” said Gaurav Ratnaparkhi of Sharekhan.
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Mazhar Mohammad of Chartviewindia.in said the bulls seem to be drawing some comfort from the 34-EMA, whose value is placed at 14,600 level. “This level has offered support on a couple of occasions in the past,” he said.
“Moreover, as the bulls managed to defend last Monday’s low, Nifty can be expected to consolidate inside the 14,600-15,000 range. For intraday traders, the 14,854 level can act as an initial hurdle. If the bulls manage to push the index beyond the said mark, its strength may expand towards 15,000 level,” Mohammad said.