“Post the occurrence of a ‘Bearish Belt hold’ formation (Reversal formation) Nifty witnessed a series of narrow ranged bodies confined within its range. Also the momentum oscillators are stating an oversold situation but only a close above 8,110 would warrant a pullback. Hence the bullish implications of the pattern would only unveil above 8,110; until then expect index to gyrate within the narrow range of 8,100-7,900 for a while,” said Sacchitanand Uttekar, Equity Technical Analyst, Motilal Oswal in a technical note.
“With 7,900 continuing to arrest downside attempts, a few more upswing attempts could be expected. The 8,100-8,130 may test the upside conviction, and it would be prudent back more longs only until above 8,186. Alternatively, fall below 7,900 could call for 7,800 initially, but further downside prospects are not clear,” said Geojit BNP Paribas Financial Services.
