Tech View: Nifty’s winning run stalls; profit booking likely below 15,050

NEW DELHI: Nifty50 snapped a six-day winning streak on Tuesday and formed a Spinning Top-like indecisive candle on the daily chart. Analysts said the 15,060-15,050 range is crucial and any breach of this zone may extend profit booking going ahead.

Nifty50 managed to settle above the 15,100 level and formed a higher high-low formation for the seventh straight session. At an intraday low of 15,064, the index was around an important short-term support of 20-EMA on the hourly scale.

Ruchit Jain of Angel Broking said any breach of that level could trigger more corrections up to the 14,870-14,900 range. Jain said the broader market trend still remains positive, but it would be prudent to book profit timely and avoid aggressive positions.

Check out the candlestick formations in the latest trading sessions

“Following the sharp rise from 13,600 to 15,250 level, Nifty50 had reached the overbought territory on the shorter time frame chart. The index has been forming small real bodies over the past three sessions, confirming the stalling of the uptrend. A trade below 15,050 level can extend profit booking to 14,930-14,850 levels. If the index manages to hold above 15,050 level, short-covering rallies may push it back to the 15,200-15,250 range,” said Aditya Agarwala, Senior Technical Analyst, YES Securities.

The index closed at 15,109, down 6.50 points or 0.04 per cent. It hit a record high of 15,257 during the session.

“If Nifty50 closes below 15,000 level, the downswing can extend initially towards the 14,700 level, with the eventual target placed in the 14,469-330 range. Strength cannot be expected unless the index registers a close above 15,257 level,” said Mazhar Mohammad of Chartviewindia.in.