The Nifty closed at 10,679.70 on Thursday. According to Pivot charts, the key support level is placed at 10,644.6, followed by 10,609.5. If the index starts moving upwards, key resistance levels to watch out are 10,717.7 and 10,755.7.
Bears gained control over D-Street right at the onset and pushed the Nifty50 below its crucial psychological support level of 10,700 on Thursday making a bearish candle on the daily candlestick charts.
The Nifty50 closed tad below its crucial support placed at 10,680 which is also its 5-day exponential moving average (DEMA). The index opened at 10,720 and slipped to an intraday low of 10,647.45 to close 38 points lower at 10,679.
Formation of a bearish candle after a Bearish Belt Hold does not augur well for the bulls but as long as Nifty trades above 10,600 levels, bulls have nothing to fear, suggest experts. Investors can keep a stop below this level (10,600) for all the long positions.
“It was heartening to see Nifty50 registering a bearish candle which is similar to a Hammer kind of formation as it recoiled after testing the gap zone of 10,647 – 10,628 levels registered on the 27th of April,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
