NEW DELHI: The Nifty50 settled flat amid choppy trade on Tuesday. The index formed a small bearish candle on the daily chart, which resembled an indecisive Spinning Top pattern. The upside remained capped in the coming sessions, say analysts.
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“A small-bodied negative candle with minor upper and lower shadows indicated a choppy trend. Nifty is facing stiff resistance at 10,600. Formation of such candles at the key resistance could be a positive indication and this hurdle is expected to be broken on the upside soon,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
For the day, the index rose 6 points, or 0.06 per cent, to 10,530. It formed an indecisive candle on the daily scale, as followup support was missing on either side.
The index has been consolidating in the 10,450-10,600 range for past three sessions. It has to continue to hold above 10,450 to extend the upward move towards the 10,650 -10,750 zone, said Chandan Taparia of Motilal Oswal Securities. Multiple supports are seen at 10,450 and 10,380 levels, he said.
Mazhar Mohammad of Chartviewindia.in advised traders to stay away from longside bets, till Nifty50 registers a breakout above 10,600 on a closing basis. The twin momentum oscillators are in the sell mode, which are usually good to signal short-term turning points, he said.