The Nifty50 went past 13,400 for the first time to touch 13,435 during the day but failed to hold on to the record high and formed an indecisive Doji candle on the daily charts on December 8.
The index witnessed profit-taking at higher levels that pushed the index below 13,400 towards the close of the trade. The index, which started off with a gap on the upside, went into negative territory for a brief period before bouncing back to close with gains of 37 points at 13,392.
As long as the Nifty sustains above 13,311, its lowest point on December 8, the upwards momentum is likely to continue and can take the index towards 13,550, experts say. Fresh exposure on the long side should be avoided.
“Despite trading in the positive zone for a major part of the day, the Nifty50 registered an indecisive formation called Doji before signing off. Moreover, advanced declined ratio slightly tilted in the favour of the bears, hinting at a wide profit-booking in broader markets,” Mazhar Mohammad, Chief Strategist–Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
“As markets are high on momentum, sustaining above 13,311 levels this counter can remain positively biased with upward targets placed around 13,550 levels. Contrary to this, if the Nifty trades below 13,300 levels for more than one hour, then it can come under selling pressure with initial targets present at around 13,170,” he said.
For the time, fresh exposure on the long side should be avoided, Mohammad said. Positional traders who are already long should consider booking profits in the next session, preferably in the 13,450–500 zone by maintaining a stop below 13,300.
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