market outlook: Tech View: Nifty forms ‘Hammer’ candle; has stiff hurdle at 12,030 level

NEW DELHI: Nifty50 on Tuesday fell below the psychological mark of 12,000 level despite some late recovery. The index formed a ‘Hammer’ candle on the daily chart, suggesting buying at lower levels.

Analysts said a fall below 12,000 is a negative despite efforts by the bulls to defend the level. Immediate resistance is seen at 12,030, while any further fall may send the index towards 11,900, they added. Adopt a ‘sell on rise’ strategy, they added.

For the day, Nifty closed at 11,992.50, down 53.30 points or 0.44 per cent.

Gaurav Ratnaparkhi of Sharekhan said the index has retraced 50 per cent of the February rally from 11,614 to 12,246 and the selling got absorbed near the key Fibonacci level that resulted in short coverings towards the end of the session.

“The bulls attempted to push Nifty back above the 12,000 mark, but they failed by a short margin on a closing basis. Overall structure shows that the minor degree bounce is an opportunity to initiate fresh short positions,” the analyst said.

Chandan Taparia of Motilal Oswal Securities believes that the index may need to move above 12,031 for any bounce towards 12,150-12,200 level. He sees immediate support at 11,900.