NEW DELHI: Nifty snapped a four-day winning streak on Wednesday and slipped below the 12,350 level.
During the session, it saw a smart recovery after briefly falling below its immediate support at 12,280.
In the process, the index formed a Dragonfly Doji on the daily chart.The declines got bought into while supports remained intact.
However, the index negated the formation of higher highs and lows on the daily scale.
It has to hold above the 12,280-12,293 zone to witness an up-move towards 12,450 and 12,500 levels, said Chandan Taparia of Motilal Oswal Securities.For the day, Nifty fell 19 points, or 0.15 per cent, to end at 12,343.Mazhar Mohammad of Chartviewindia.in advised traders to remain 'neutral' on the index.
Next session, if Nifty50 trades below 12,278 for a larger part of the session, it can set the tone for a short-term trend reversal.
In such a scenario, the index shall eventually head into the bullish gap zone between 12,132 and 12,044 levels registered on January 9.
Strength shall re-emerge on a close above 12,374 level," he said.Santosh Meena, Senior Analyst at TradingBells, said Nifty respecting the 12,300 level on a closing basis is a good sign.Bank Nifty also witnessed a recovery from near its 50-DMA.
We can expect the market to continue with the gains as long as Nifty manages to hold above the 12,300 mark.
Midcap and smallcap indices are likely to continue their outperformance, Meena said.