Tech View: Nifty50 forms bullish candle, sets eyes on 16,750

NEW DELHI: Nifty50 on Thursday closed above the 16,600 level, forming a bullish candle on the daily chart. Analysts said it may face some resistance around its 200-day EMA, which is placed near the 16,750 zone while they continue to see the 16,400 level to act as an immediate support zone.

For the day, the index closed at 16,628, up 105.25 points or 0.64 per cent.

"The technical structure construes to be encouraging, as Nifty50 has been hovering in a slender range for the last couple of trading sessions and is attracting buying interest at the lower levels. The index has formed a strong 'bullish engulfing' pattern on the day of weekly expiry, which is an intriguing factor for the bulls. The unfilled gap of 16,370-16,430, which coincides with 21-DEMA, has already proved its mettle in providing a strong demand and is expected to yield immediate support," Osho Krishan of Angel One.


Krishan said the 200-DEMA placed near 16,740 is likely to act as immediate resistance and any decisive breach above the same could trigger fresh momentum in the coming period.

Mazhar Mohammad of Chartviewindia.in said the index needs a close above 16,750, where the 200-day EMA is placed, for a sustainable up move.

"In that scenario, a higher target of 17,100 can be expected. Contrary to this a close below 16400 can induce a fresh bout of weakness in the index. In simple words, the Nifty50 may remain trendless in the near term unless it emerges out of the consolidation zone of 16,700 – 16,400 level," he said.

Nifty Bank
Chandan Taparia of Motilal Oswal Securities said Nifty Bank is holding above its 50-EMA and closed near its day’s high. It formed a Bullish candle and an Inside Bar on the daily scale, holding higher zones.

"It needs to hold above 35,500 for an upmove towards 36,000 and 36,100 while on the downside support exists at 35,250 and 35,000 zones," he said.

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