Analysts said the 13,673-80 levels needs to be respected on Friday, else a halt to the ongoing rise may set in.
NEW DELHI: Nifty50 climbed for the fifth session on Thursday and closed above the 13,700 mark, a day after breaking out of a crucial resistance level. The trading range remained narrow, and the index formed an indecisive candle for yet another day.
Analysts said the 13,673-80 levels needs to be respected on Friday, else a halt to the ongoing rise may set in.
"As sell signals on technical indicators and oscillators of lower time frame charts are getting whipsawed, perhaps owing to excess liquidity. Traders are advised to look only for long side opportunities until some strong reversal signs get visible," said Mazhar Mohammad of Chartviewindia.in
Mohammad said if Nifty fails to sustain above 13,673 level, some pause in the ongoing momentum is likely.
For the day, the index closed at 13,740, up 58 points or 0.42 per cent.
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"The index reacted to the previous breakout and opened the day with a gap up. It closed forming an indecisive candle. Going forward, the 13,680 level will act as immediate support and any breakdown below this level can lead to profit booking. Immediate resistance is seen at 13,775," said Rohit Singre, Senior Technical Analyst at LKP Securities.
Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan, said the index has been trading in a rising channel for the last several sessions. In every minor degree dips, Nifty has been taking support near the lower channel line and the key hourly moving averages.
Check out the candlestick formations in the latest trading sessions 'These parameters are shifting higher along with the price action. Hence, the near-term support zone has shifted higher to the 13,650-13,600 zone. The daily and hourly upper Bollinger Bands continue to raise the bar higher. The overall structure suggests the index can head towards 13,900 level in the short term," he said.
