Nifty: Tech View: Bulls take a step back as Nifty finds it hard to breach 9,350

NEW DELHI: Nifty50 climbed over 1 per cent on Monday but could not breach the stiff resistance in the 9,350-9,390 region on a closing basis. The index formed a Gravestone Doji on the daily chart, as the bears made a comeback and cut gains that the bulls had made in intraday trade.

Analysts said Nifty needs to clear the 9,350-9,400 range for any further upside. Levels around the 9,250 mark will continue to offer support, they said.

For the day, Nifty closed at 9,282, up 127 points or 1.40 per cent.

“The bulls failed yet again to take the index beyond the 9,400 mark, giving an opportunity to the bears to step in and push it lower. A trade below the 9,250 mark could resume the correction, and drag it lower to 9,200-9,150 levels. The bulls need to make sure that they take the index beyond the resistance in the 9,360-9,400 zone for it to break out of the 500-point trading range,” said Aditya Agarwala, Senior Technical Analyst at YES Securities.

Rajesh Palviya of Axis Securities rued the failed opportunity after the index hit a high of 9,377 – above the 10-12 sessions’ multiple resistance point at the 9,350 level.

“Nifty continues to consolidate in a broad range between 9,400 and 8,900 levels, representing short-term sideways trend. Hence, any breakout on either side on a closing basis will signal further direction. An immediate intraday support is placed around the 9,250 level. The Index still continue to hold its five-week-long up-sloping trend-line support at 9,180, which remains a crucial level to watch out for,” Palviya said.

Among the technical indicators, daily strength indicator RSI and momentum indicator Stochastic remained in the bullish mode, which supports rising strength and upside momentum ahead, Palviya said.