Tech View: Nifty50 forms a small bullish candle, may move higher

NEW DELHI: Logging gains for the fourth session in a row, Nifty50 on Monday topped the 11,000 mark and formed a small bullish candle on the daily chart. Monday’s was the third session when Nifty formed higher highs and lows for the index, suggesting that supports have shifting higher.

Analysts said the index might trend higher if it manages to take out the 11,042 level decisively. The 10,900 level may pose a strong support to the index, they said.

Most of the near-term metrics are in the ‘buy’ mode and support extension of the ongoing rally, said Arun Kumar of Reliance Securities. The index has the potential to move towards the 11,130-11,200 zone over the next few sessions, Kumar said.


For the day, the index rose 56.85 points, or 0.52 per cent, to 11,003. It closed above the 21-day exponential moving average (EMA), whose value is placed at 10,990 level.

Ruchit Jain of Angel Broking said both Nifty and Bank Nifty surpassed the high of the ‘Dragonfly Doji’ pattern formed on the weekly chart and have closed above the same, thus confirming a trend reversal. He expects the index to head towards the 11,100-11,180 zone soon.

“A bigger thrust for the index shall be expected on a close above 11,042. In such a scenario, the index can initially head towards its 50-day EMA at 11,174. Traders who are already long should continue to hold their bets,” said Mazhar Mohammad of Chartviewindia.in.