If Nifty50 fails to hold 11,452 level on Tuesday, it can come under selling pressure, said Mazhar Mohammad, Chief Strategist at Chartviewindia.in.
“As long as Nifty50 sustains above 11,452 level, a rangebound trade up to 11,600 level is likely. A close below 11,450 level can turn the tide in favour of the bears, with an initial index target of 11,347-295. Traders are advised to avoid fresh long positions, whereas positional traders who are already long shall place a tight stop loss below 11,450 level,” he said.
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During the day, Nifty50 moved beyond a downward sloping trendline resistance formed by joining the recent peaks. But the bulls could not keep the index at elevated levels, leading to profit booking in the second half of the trading session, said Aditya Agarwala, Senior Technical Analyst, YES Securities.
The index eventually closed at 11,503, up 86.40 points or 0.76 per cent. It has been making higher lows since last six sessions and supports are gradually shifting higher, said Chandan Taparia of Motilal Oswal Securities.
“On Monday, it formed a bullish candle that looked like a Spinning Top, as it failed to hold at higher levels. It surpassed a falling supply trend line on the daily scale, by connecting the recent swing highs, and saw the highest daily close in 10 sessions. Nifty needs to hold above 11,450 level to witness a further up-move towards 11,600 level,” Taparia said.
Agarwala believes a failure to reach the 11,550 level in the coming session can lead to profit booking, dragging Nifty50 lower to 11,450-11,350 levels.
“On the flip side, a sustained trade above 11,550 level will extend the uptrend, taking the index higher to 11,610-11,685 levels,” he said.