Tech View: Higher high-low & bullish candle show Nifty on a strong footing

NEW DELHI: Nifty50 on Monday settled above the psychologically vital 15,000 mark for the primary time. This was the sixth straight session when the index made a larger high-low formation.

That stated, a small bullish candle on the day by day scale with an higher wick dominating the candle’s physique steered promoting at larger ranges. The index might take a breather now, however the momentum will stay strong so long as the index sustains above the 15,000 degree, analysts stated.

Nifty closed at 15,115 degree, up 191 factors or 1.28 per cent. It had a gapup begin earlier within the day. Nagaraj Shetti of HDFC Securities stated Monday’s was the second unfilled hole in a span of 5 periods.

“The formation of the previous gap on February 2 could be considered a bullish breakaway gap and Monday’s gap is expected to be a bullish runaway gap, provided it remains unfilled for the next few sessions. On the occurrence of such action, the market could see more upside in the near term,” he stated.

Check out the candlestick formations within the newest buying and selling periods

Independent analyst Manish Shah stated the index has now began buying and selling in a slim vary as volatility has subsided and there are not any kneejerk actions. “The MACD has moved into the ‘buy’ mode and the RSI is showing strength above the 60 mark. The negative divergence on the RSI still persists, but there is no confirmation of any reversal trend. Support for Nifty50 lies in the 15,060-15,050 zone, and a break below this level can attract selling towards the 15,000-14,080 zone. On the upside, there is a window of opportunity for a rally toward the 15,500 level over the next 8-10 sessions,” Shah stated.

The 15,500 degree, analysts stated, is essential, as it’s the 1.618 per cent Fibonacci extension related from the January 2020 high to March 2020 backside.

Chandan Taparia of Motilal Oswal Securities stated the index would wish to carry above 15,000 degree to increase its bullish momentum in direction of 15,250 and 15,500 Levels. He sees assist for the index at 15,000 and 14,750 ranges.

Meanwhile, day by day charts confirmed that whilst Nifty has moved larger within the final 4 periods, it fashioned indecisive patterns in three, suggesting weakening of momentum, stated Mazhar Mohammad of

“Some kind of breather for the bulls seems to be inevitable within the subsequent couple of periods, although weak spot on this regard might be confirmed on a shut under the 15,014 degree,” he stated.

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