Tech View: Nifty eyes 13,500 level as bulls continue to hold ground

NEW DELHI: Nifty50 on Monday topped 13,350 level as it took its recent gains to the fifth day in a row. The index formed a bullish candle on the daily chart and made higher high higher low for the sixth straight day. Analysts said the index closing above 13,350 is a positive sign and that the NSE barometer has the potential to touch 13,500 level in the short run. The support for the index is seen in the 13,200-250 range, they said.

"This liquidity-gushed rally seems to have created the fear of missing the opportunity, which is evident from the behaviour of buying every intraday dip in the last couple of trading sessions. The only option left to market participants at this juncture is to remain long by trailing their stop loss levels on a closing basis," said Mazhar Mohammad of Chartviewindia.in.

Mohammad expects Nifty50 to head towards its next logical target of 13,550 level. In case it closes below 13,241, some pause in the current upswing can be expected, he said.


For the day, the index closed at 13,355.75, up 97.20 points or 0.73 per cent.

Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan said that the index has scaled above its daily upper Bollinger Band and is attempting to push the bands into an expansion phase.

"Once the bands start expansion, it will assist the price action on the way up. On the higher side, the immediate hurdle zone is at 13,380-13,400. Overall, the index is expected to march towards 13,700 in the short term. On the other hand, the support zone shifts higher to 13,200-13,250," he said.

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Tuesday would be an interesting day for the market, as a Nifty50 close above the level of 13,360 would see the index rallying further, said Independent Analyst Manish Shah.

"A rise of 13,360 levels would send Nifty50 to 13,500 levels. Buying is advisable only if Nifty falls to 13,150-13,100 levels," he said.