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Tech View: Bears back in the game as Nifty slips below 12,000 mark

Chandan Taparia of Motilal Oswal Securities sees selling pressure in the 12,000- 12,050 range.

, ETMarkets.com|
Nov 08, 2019, 04.55 PM IST
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Tech View: Nifty forms Inside Bar, shows sign of a downward leg too
It’s been over a week that the index was forming indecisive candles.
NEW DELHI: Nifty50 on Friday could not hold above the 12,000 mark and slipped below the immediate support at 11,946 level, bringing the bears back into the game.

It’s been over a week that the index was forming indecisive candles. On Friday, it formed a bearish candle on the daily chart. The NSE barometer has fallen below its five-day exponential moving average and analysts said the reclaiming of 11,946 level will be initial step to recovery.

“Weakness will be confirmed on any close below 11,850 level, as the breach of this level will not only result in a lower low on the price chart, but also result in a breakdown of the ascending trendline, which is in progress from the low of 10,691 level hit on September 20,” said Mazhar Mohammad of Chartviewindia.in.

“In between, a decent support is placed around 11,820 mark, where the bulls may try to put up some fight. For the time being, the upside is capped around the 12,034 level,” he said.

Nifty continues to see strong supply at 12,000 level with a high probability of mean reversal towards the 11,700 mark, said Bhavin Mehta of Dolat Capital. He said the MACD is about to see a negative crossover on the daily chart.

“On the weekly chart, we clearly see Nifty forming a Doji like pattern at the previous peak. In such cases, unless Nifty sees a close above the 12,100 mark, we would continue to see supply at higher levels,” he said.

Chandan Taparia of Motilal Oswal Securities sees selling pressure in the 12,000- 12,050 range. The index, he said, has to continue to hold above 11,850 to witness an up-move towards the 12,035 level.

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