Nifty50 superior 119 factors, or 0.80 per cent, to 14,942 degree, amid shopping for in metals, banking and pharma stocks. The index continued its successful streak and noticed constructive shut for a fourth session on May 10.
Bank Nifty gained 0.87 per cent.
“Nifty’s trading range for the day remained extremely narrow inside 70 points, which was less than the previous session’s 93 points, which hinted at waning momentum in the upward journey. These back-to-back narrow sessions can result in sudden trend reversal, as is evident from the historical price behaviour,” stated Mazhar Mohammad, Chief Strategist, Chartviewindia.
“Traders are advised to avoid Nifty trades for the time being, considering the narrow trading range, and shift focus to stock-specific opportunities,” he stated.
Mohammad stated until Nifty registers a robust shut above 15,045 degree with a big bullish candle, one can not count on a sustainable upswing. Meanwhile, Nifty must maintain above Monday’s minor bullish hole space current between 14,892 and 14,863 ranges to retain the bullish bias, as a detailed beneath 14,860 degree may be thought of because the preliminary signal of weak point.
Earlier within the day, Nifty opened the session with a very good hole and hit a excessive of 14,951 and low of 14,912.
“A strong hurdle still exists at 15,050 level. If Nifty manages to sustain above it for a day or close above it, only then we may see further upside. Otherwise, some profit booking is possible and support can shift to the 14,900-14,850 zone. If Nifty holds above these levels, the momentum can remain good,” stated Rohit Singre, Senior Technical Analyst at LKP Securities.
Individually, L&T and HDFC had been the most important contributors to the positive factors in Nifty50 and Sensex30. In the broader market, PSU shares turned winners. From among the many defensives, pharma shares did effectively.
Not everybody thinks narrow candles are unhealthy for the market. “The market is daily moving upward cautiously and forming a series of indecisive candles. Whenever the market has formed a series of indecisive candles, Nifty has actually moved upward,” stated Shrikant Chouhan, EVP, Equity Technical Research, Kotak Securities.
He stated Bank Nifty closed above the psychological barrier at 33,000 degree, which could carry the index to 34,000 degree with a significant hurdle at 33,650 degree.