Tech View: Nifty forms Bearish Belt Hold again; bulls no match to bears

NEW DELHI: Nifty50 lost the 8,100 level on Friday, thanks to a consecutive fall for two days. On the daily chart, the index formed a Bearish Belt Hold pattern for yet another day, suggesting that the bulls were no contest for the bears from the word go.

This was the seventh straight week when the index ended up with a bearish candle on the weekly chart. Analysts said the near-term trend remains negative, with the immediate support seen at the 8,000 level. The immediate resistance is seen at the 8,350 level.

A formation of the Bearish Belt Hold reinforces the downtrend, said Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan.

“The hourly chart showed Nifty has retraced 61.8 per cent of the previous rise from 7,511 to 9,038 level. Going forward, the 8,000-7,920 range will be a key area to watch out for, below which Nifty can tumble all the way down to 7,511 level. On the other hand, the 8,300-8,350 range will act as a crucial resistance zone,” Ratnaparkhi said.

The index closed the day at 8,08, down 170 points, or 2.06 per cent.

“Nifty needs to sustain above the 7,800 level in the current leg of fall. In case it closes below 7,610, the weakness will be confirmed, which will open up more downsides. For the time being, traders are advised to remain neutral and wait for stability to emerge,” Mazhar Mohammad of Chartviewindia.in.

Arun Kumar of Reliance Securities warned that Nifty has scope for a fall towards the 7,350-7,500 range.

“Nifty has immediate support at 8,000. If it fails to hold above that, we may see a sharp cut towards the 7,800-7,500 zone. Resistance for the coming week is seen in the 8,350-8,500 range. Only above the 8,350 level, we may see some relief,” said Rohit Singre, Senior Technical Analyst at LKP Securities.