Thursday’s was a rangebound session for Nifty and Nifty Bank. The day saw NSE barometer Nifty trading in a narrow 105-point range, before eventually forming an indecisive candle on the daily chart. This was the second day when the index formed an indecisive candle, as traders turned indecisive at high.
In the case of Nifty Bank, the index formed an small bullish candle on the daily chart, with a long upper wick. But analysts do not see it as a sign of fatigue. For Nifty, resistance is seen at 18,500 level while support is seen at 18,250-180 level. Nifty Bank needs to hold above 42,700 level for an upside of 43,500 level, analysts said.
Gaurav Ratnaparkhi of Sharekhan said Nifty has paused near the rising trendline drawn from the previous key swing high on the hourly chart.
“The 18,450-18,500 range is the key to monitor on the higher side. On the flip side, 18,300-18,280 will act as a support zone, which will decide the further course of action for the index. If Nifty breaches 18,280 on the downside, the structure will turn in favour of the bears for the short term. The broader end of the market continues to show short term weakness,” he said.
For the day, Nifty closed at 18,343.90, down 65.75 points or 0.36 per cent.
Nagaraj Shetti of HDFC Securities said positive chart patterns like higher high-low continued on the daily chart and further consolidation from here is likely to be a higher bottom of the sequence.
“Nifty is likely to find support at the 10-day EMA around the 18,250 level and we expect the market to show an upside bounce from such lows in the short term,” Shetti said.
In case of Nifty Bank, Independent Analyst Manish Shah said Nifty Bank has seen three bullish candles in a row, but the range has seen some contraction.
“Nifty Bank is making all time high but there is no evidence of any reversal or overwhelming selling pressure. Nifty Bank should see a steady rally to 44,000-45,000 over next couple of weeks. Major support is seen at 40,270, a break above this and the rally should continue. Banking stocks remain in a strong trend and several of them has shown a corrective decline. Some banking stocks could offer some nice opportunities going into the last week of November expiry,” Shah said.
Kunal Shah, Senior Technical Analyst at LKP Securities said the index stayed sideways. To resume its upside, the index must trade decisively above the level of 42,700 level, which will confirm the continuation of the uptrend towards 43,000-43,500 levels, he said.
Nifty Bank closed the day at 42,458.05, down 0.18 per cent.
