Tech View: Nifty50 forms bullish candle, can test recent high

“This indicates the possible completion of a recent downward correction in the market. The positive sequence of higher tops and bottoms is intact, and Wednesday’s low of 16,438 could now be considered as a new higher bottom of the sequence. Now, one may expect the Nifty50 to move up and challenge the recent higher top of 16,752 shortly,” Shetti said.

For the day, the index closed at 16,641.80, up 157.95 points or 0.96 per cent.

Mazhar Mohammad of Chartviewindia.in said the index appears to be finding some buying support in the bullish gap area of 16,490 and 16,359 levels and post the Fed outcome, the ongoing strength should expand towards its 200-day SMA, whose value is placed around 17,033 levels.

This is, he said, if the index manages to sustain above 16,359 level on a closing basis.

“In case, the Nifty50 registers a close below 16,359 levels, then the weakness shall initially lead it to test its 20-day SMA, whose value is around 16,197. However, as markets will react to the Federal Reserve outcome it looks prudent on the part of short-term traders to remain neutral for Thursday,” said Mazhar Mohammad of Chartviewindia.in.

Nifty Bank
Nifty Bank managed to hold support of 36,250 zones and moved higher throughout the day.

“The dominance of the bulls took the index above 36,800 to close with gains of around 375 points. It formed a Bullish Engulfing candle on the daily scale, with support based buying seen at decline. Now it has to hold above 36,666 for an upmove towards 37,000 and 37,250 whereas supports are placed at 36,666 and 36,250,” said Chandan

of Securities.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)