3560: Hot Stocks | Tata Steel, Tata Chemicals, Sequent Scientific can give double-digit return in short term
The Nifty managed to close above 18,000 psychological mark for the 3rd session and formed a Doji candle on daily charts. However it is important to note that in the recent up move, the index has been forming small bodied candles indicating loss of momentum.
The RSI (relative strength index) indicator on lower timeframes is showing price momentum divergence.
The Nifty has resistance in the 18,270-18,330 zone whereas the support lies at 17,900 mark.
The index looks over-stretched and could possibly be rangebound and witness a pullback towards 17,900-17,950 levels. On the flip side if index manages to cross 18,330 then it can move higher towards the life time high of 18,600.