However, the index draws a long bullish candle on the daily chart with an upper marginal wick. The recovery following a gap-down opening was very promising, but a bearish immersive candle on a weekly chart is not. Analysts foresee consolidation in the market ahead.
The intraday recovery halted near the key hourly moving average which had initially limited the index also from claiming the mark of 10,000,” Gaurav Ratnaparkhi of Sharekhan said.
He also said, “There is a weakness signal due to the formation of Bearish outside bar on the index near the key weekly moving averages. The high of 10,328 levels would become a major hurdle for Nifty with the newly became key short term support at low of 9,544 on Friday”.
“The Nifty should hypothetically consolidate around these levels with upsides capped at 10,206 points which is a 100-day moving average,” said Mazhar Mohammad of Chartviewindia.
“The newly Friday’s low at 9,544 points should work as new support level for the short terms, any breach in this would be a downward trend for bulls,” he added.
“Most oscillators are in either in “Sell” mode or in the process,” said Arun Kumar of Reliance Securities. “There could be some headwinds to be faced by Nifty in the next few sessions around 10,160 – 10,250 levels” he expects.