Nifty50 on Friday climbed for the fifth straight day. The index formed a small bullish candle on the daily chart and a long bullish candle on the weekly chart, the fourth in a row. Analysts said the bulls need to be cautious at this juncture and felt profit booking at higher levels couldn’t be ruled out.
Nagaraj Shetti, Technical Research Analyst,
Securities, said Friday’s daily candle indicates the formation of a High Wave-type candle pattern. Having formed this pattern within a narrow range movement, the predictability of this pattern could be less, he said. “However, High Wave displays high volatility in the market,” Shetti said.
“Nifty50 is now gradually advancing towards the significant overhead resistance of the down trend line with slower upside momentum (intermediate downtrend line connected from the important lower tops) around 17,800-17,900 levels. The significance of this trend line indicates a higher possibility of reversal down from the highs,” he said.
For the day, the index closed at 17,698.15, up 39.15 points or 0.22 per cent.
Amol Athawale of Kotak Securities said Nifty50 is consistently forming higher high-low formation, which is broadly positive. The bullish candle on the weekly charts also supports a further uptrend from the current levels, he said.
“However, 17,900-18,000 could act as the strong resistance level. Further, momentum indicators like Stochastic and RSI indicate a strong possibility of some profit booking at higher levels. We believe that, due to the temporary overbought situation, we could see range-bound activity in the near future,” Athawale said.
Independent Analyst Manish Shah expects Nifty50 to trade gradually towards 17,850-17,900, where the true test of the bulls will take place. “If it whistles past 17,850-17,900, opportunities for Nifty50 to move above 18,600 will open up dramatically,” he said.
Nifty Bank
Kunal Shah, Senior Technical Analyst at
, said the banking index continued its strong upmove throughout the week and surpassed the level of 39,000 on a closing basis. The index next resistance is placed at 39,500, he said.
“This is where fresh call writing has been witnessed. If breached it will see a further upmove towards the 40,000 level. The immediate support on the downside stands at 38,000, and one should keep a buy-on-dip approach,” Shah said.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsBit.us is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
