But selling pressure did trickle in during the day, and this saw the index forming a hanging man pattern on the daily charts, suggesting the possibility of a bearish reversal.
“The bearish formation around the crucial resistance of 21,000 amplifies the bearish sentiment,” said Rupak De, senior technical analyst at LKP Securities.
The support for the index lies at 20,850, below which the market may witness a healthy correction in the short term, he said. On the other hand, a move above 21,000 might trigger a resumption of the bullish trend.
The 50-stock index ended at 20937.70 points, after touching a lifetime high of 20961.95 points during the day.
Here’s what few other market experts have to say about the market trajectory:
Jatin Gedia, technical research analyst, Sharekhan by BNP Paribas
On the daily charts, we can observe that the bulls have been able to hold on to the gains. It is now trading around the psychological level of 21,000, which can provide some resistance over the next few trading sessions.
On the hourly charts, the momentum indicator has a negative crossover which indicates a loss of momentum on the upside.
Considering the sharp runup in the previous few trading sessions, a consolidation is highly likely. On the upside, 21,000-21,060 shall act as an immediate hurdle zone, and 20,800-20,730 shall act as a crucial support zone.
Kotak Securities
Technically, on daily and intraday charts, the Nifty 50 is holding a breakout continuation, which is largely positive. For the trend-following traders, the support has shifted to 20,850 from 20,700.
We are of the view that, as long as the index is trading above 20,850, the positive sentiment is likely to continue. Above this, the market could rally to 21,050-21,100. On the flip side, below 20,850, the uptrend would be vulnerable.
Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities
A small negative candle was formed by Nifty 50 on the daily charts with a long lower shadow. Though this market action alerts caution for bulls at the new highs, a reasonable decline in subsequent sessions is likely to confirm a short-term top reversal for the market.
Having moved up sharply in the last few sessions and the placement of hurdle around 20,910 levels, there is a possibility of consolidation or minor correction from near the 21,000 levels in the short term. Immediate support is placed at 20,800 levels.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
