Tech View: Nifty eyes further gains as bulls stage a roaring comeback
Nagaraj Shetti, Technical Research Analyst at HDFC Securities, said Nifty50 saw sharp gains on a weekly basis after a sluggish market movement in the past couple of weeks.
Traders are advised to maintain a bullish bias, but not to trade highly leveraged or aggressive bets. Soon a mild dip can trigger profit taking.
NEW DELHI: Nifty50 on Friday took out the 13,250 level for the first time, and ended up forming a bullish candle on the both daily and weekly charts. The index formed higher highs and lows for the fifth session in a row, signalling a bullish bias.
It needs to hold above 13,100 level to witness a bounce towards 13,400 level, said Chandan Taparia of Motilal Oswal Securities. "On the downside, major support exists in the 13,000 level," he said.
For the day, Nifty closed at 13,258, up 124.65 points or 0.95 per cent.
"The short-term trend continues to be bullish. But the index is trading at the rising channel on the weekly chart. Traders are advised to maintain a bullish bias, but not to trade highly leveraged or aggressive bets. Soon a mild dip can trigger profit taking. A break below the 12,900 level can be taken as a warning signal of a short-term decline,” said Nirali Shah, Senior Research Analyst at Samco Securities.
Nagaraj Shetti, Technical Research Analyst at HDFC Securities, said Nifty50 saw sharp gains on a weekly basis after a sluggish market movement in the past couple of weeks.
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"The confusing Doji pattern on the weekly chart was negated on Friday, as Nifty50 closed above last week's high of 13,145. This could be seen as sign of strength in the upside momentum after the breakout of the long-term resistance of uptrend line (connected from top-to-top weekly timeframe). This is a positive signal and more upside could be expected in the coming weeks,” Shetti said.
Check out the candlestick formations in the latest trading sessions "As the market under the firm control of the bulls, if Nifty sustains above the 13,152 level in the next session, it can push the index towards the next target at 13,320 level. Beyond that, a higher target of 13,550 cannot be ruled out. If Nifty trades below 13,150 level for the major part of next session, intraday weakness can creep in and drag the index down towards 13,100 level initially,” said Mazhar Mohammad of Chartviewindia .in.
