The Nifty50 today hit the 9,800 mark for the first time ever, but pared gains to eventually close with modest gains. The 50-pack index settled below its opening level, as suggested by the red real candle.
With this, the index appeared to have formed a ‘Shooting Star’ pattern, suggesting uneasiness among traders at higher levels of the indices. Analysts pointed out that even the advance-decline ratio was skewed in favour of the bears.
The Nifty50 opened the day on a firm note and hit the 9,800 level as soon as trade began. The index later hit the day’s high of 9,830, which was also a record high for the index. The index later lost way and hit a low of 9,778, before climbing a bit and closing the day at 9,786, up 15 points, or 0.15 per cent.
Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory at Chartviewindia.in, said one can expect the market to come under pressure on Wednesday if the Nifty50 trades below 9,778 at least for the first hour of trading.
“We advise traders to consider booking part profit and going selectively long on largecap stocks with stop loss below 9,700 level on a closing basis,” Mohammad said.
That said, Taparia believes any decisive close above the 9,800 mark could extend the ongoing rally towards 9,850 and 9,900 levels.