New Delhi: Nifty50 on Thursday made an upside breakout, as the index closed above 16,900, breaching a slew of strong resistance hurdles. The index made a gap-up start and still ended up forming a strong bullish candle on the daily scale.
Analysts said that the support shifted higher, and the index may now set its eye on the 200-day simple moving average, whose value is placed above the 17,000 level.
“Nifty50 witnessed an upside breakout of the crucial overhead resistance of 16,800 level, which was resistance as per the concept of change in polarity. Previously, the area of 16,800 saw a strong reversal on either side. Unfilled opening gaps and the positive chart formation like higher top-bottom are all indicating more upside,” said Nagaraj Shetti, Technical Research Analyst at
Securities.
For the day, the index closed at 16,929.60, up 287.80 points or 1.73 per cent.
Gaurav Ratnaparkhi of Sharekhan said that the bulls maintained the upper hand throughout the day, adding that the 16,750-16,800 range has become a near-term support zone.
“As long as the index trades above this zone, it can continue to march higher towards 17,000, where there is 61.8 per cent retracement of the April–June decline and the 200-DMA. If the bulls manage to take out the level of 17,000, the index can stretch towards 17,200 in the short term,” Ratnaparkhi said.
Mazhar Mohammad of Chartviewindia.in said that follow-through is needed in the next couple of sessions without violating 16,746 levels on a closing basis.
“In that scenario, an initial hurdle can be its 200-SMA, whose value is present at around 17,030 levels. If the index manages to sustain above the said hurdle then, eventually, higher targets towards 17,500 cannot be ruled out,” he said.
Nifty Bank
Kunal Shah, Senior Technical Analyst at
, said that the index has continued its upward momentum and surpassed the immediate hurdle of 37,000. It remains in buy mode with immediate support at the 37,000-36,800 zone.
“The next hurdle is placed at 38,000, where a significant amount of call writing has been witnessed. The RSI remains in a buy zone as long as it is trading above the level of 60,” he said.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
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