Nifty forms Hammer on weekly chart
However, daily charts indicate higher bottom formation
image for illustrative purpose
Mumbai: In the last week, the benchmark indices witnessed a range-bound activity, after a roller-coaster momentum. BSE Sensex closed at 61,054 points. Among sectors, buying interest continued in auto and selective mid-cap stocks whereas banking and pharma indices underperformed.
“Technically, on daily and weekly charts the index held the higher bottom formation, but on weekly charts it has formed Hammer candlestick pattern which is broadly negative,” says Shrikant Chouhan of Kotak Securities.
For traders now, the 61,700 level would be the key resistance zone, below the same the market could retest the level of 60500 points. Further, down slide may also continue which could drag the index till 60,300 points. On the flip side, fresh uptrend rally possible only after dismissal of 61700.
Above the same, the market could move up till 62,000-62,200 range. Meanwhile, after a strong uptrend rally, on last Friday, the Bank Nifty has formed reversal formation. In the near future, as long as it’s trading below 43,400 points, the correction wave is likely to continue. Below the same, it could slip till 42,300-42,000 range. On the other side, above 43,400 points it could move up to 43,700-43,900 points.
