NEW DELHI: Nifty50 on Tuesday rose for the sixth straight day. The index failed to capitalise on a gap-up start and remained range-bound before eventually ending up, forming an indecisive candle on the daily scale. There is no sign of reversal though.
Albeit the momentum is clearly in favour of the bulls, the margin of safety is clearly missing, said Mazhar Mohammad of Chartviewindia.
“Moreover, despite a strong gap-up opening, the intraday trading range remained at 75 points before signing off the session with a Doji formation. It is critical for this index to sustain above 17,764 and 17,724 levels as a close below the said zone may induce selling pressure with initial targets of 17,597. On the continuation of the positive momentum, the index can target 18,100 levels,” he said.
For the day, the index closed at 17,825.25, up 127.10 points or 0.72 per cent.
Nagaraj Shetti of
Securities said minor intraday dips were bought into, and the opening upside gap remained unfilled.
“Many opening upside gaps remained unfilled in the recent past, signalling a continuation of upmove. Nifty50 is now placed at the edge of the significant overhead resistance of the down-sloping trend line around 17,850-17,900 levels. This is a positive indication and suggests that the hurdle could be taken out on the upside soon,” Shetti said.
Nifty Bank
Nifty Bank closed the day at 39,239.65, up 197 points or 0.5 per cent. Ruchit Jain, Lead Research at
5paisa.com, said the bank index formed a Doji candle on the daily chart. That, at around its previous swing high resistance. Although there’s no confirmation of the reversal yet, he said, one should reduce the quantum of long positions and take some money off the table given highly overbought readings around the resistance zone.
The index, said Kunal Shah – Senior Technical & Derivative Analyst at
after a stupendous rally is showing signs of exhaustion.
“However, a profit booking scenario will be confirmed only on a close below 38,700 level. The index, if it surpasses the level of 39,500 on a closing basis, will see extension of the rally towards 40,000-41,000 levels,” 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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