Tech View: Nifty rebound to test a hurdle in 11,990-12,020 range

NEW DELHI: Nifty50 on Tuesday vaulted 272 points to close near the 12,000 mark. In the process, the index breached its five-day exponential moving average (EMA) and formed a solid bullish candle on the daily chart. The index needs to breach the 11,990-12,020 range for further upside, analysts said.

“Nifty is now approaching its 50 per cent and 61.8 per cent Fibonacci retracements, which is at 12,020. A sustained trade beyond this resistance will extend the up-move to 12,060-12,120 levels. The 11,900 level will act as a strong support, failing which the index can see profit booking in the 11,875-11,855 range,” said Aditya Agarwala of YES Securities.

For the day, the index rose 2.32 per cent to 11,979.65.


During the day, Nifty hit a high of 11,986. This was also the nine-day simple moving average for the index.

“There seems to be resistance at the level, as earlier pullback attempts on a corrective swing from the highs of 12,430-11,614 perished after testing the said average. In order to establish strength, the bulls initially need to register a close above 11,987 level,” said Mazhar Mohammad of Chartviewindia.in.

On hourly charts, the index has halted near the falling trend-line, which is just below 12,000, said Gaurav Ratnaparkhi of Sharekhan. “There is a high probability for the next down leg to start,” Ratnaparkhi said, adding that a downside momentum can once again pick up once Nifty breaks the 11,900 level on the downside.

Mehul Kothari of IndiaNivesh Securities seconded that view.