This was the third in the last five sessions, where the NSE barometer failed to exceed the psychological level. This does not portent well for bulls.
Sacchitanand Uttekar of Tradebulls Securities said in a statement,” Weekly scale indicated looming of Dark Cloud due to the lasting caps of the upside”.
Uttekar also said,” Due to continuous formation of a series of Inside Bar on the daily scale, relative strength is consistently weakening. Along with taking a look at the broader price structure and time cycles conjunction on a daily scale, it would be ideal to hold back from the building of any fresh longs“.
On Wednesday, the index was down by 32.82 points or 0.33 per cent and closed at 9,881 points.
“Nifty is consolidating in a narrow range of between 9,720 points on the downside and 10,060 points on the upside,” said Aditya Agarwala of YES Securities.
Agarwala also said,” A close of Nifty50 above 10,000-10,060 points will take uptrend, taking Nifty to 10,300-10,500 points. However, we can see index slide down to 9570-9,400 points, if bears drag the index below 9,720 points. The RSI also indicating a weakening of the uptrend due to turning of time frame chart from neutral to southward level”.
Manish Hathiramani of Deen Dayal Investment stated ” Market is in the consolidation state as index been stuck between 10,050 and 9,700 levels. As long as index won’t be go past these levels, we will remain in rangebound mode”.