The ‘Piercing Line’ is a bullish reversal sample shaped on the lows and signals reversals of short-term bottom. Analysts mentioned Nifty might need shaped a bottom at Friday’s low of 14,350.
Analysts mentioned Friday’s restoration got here from the confluence of support levels, because the index virtually retraced 62 per cent of its final leg of rally from the low of 13,596 to fifteen,431 stage on the intraday low of 14,350.
“Friday’s low was contained in the bullish hole zone registered on February 2. If Nifty persistently trades above 14,475 stage, then the chance of bottoming out at Friday’s low of 14,350 will stay excessive. A affirmation in this regard will be anticipated solely on a detailed above the 15,051 stage,” mentioned Mazhar Mohammad of Chartviewindia.in.
Check out the candlestick formations in the newest buying and selling periods
That mentioned, regardless of the restoration, sideways value motion of final six weeks seems to have paved the best way for a ‘sell’ sign on the weekly MACD chart.
“Thus, the sustainability of this rally shall remain somewhat uncertain,” Mohammad mentioned.
For the day, Nifty closed at 14,744, up 186 factors or 1.28 per cent.
Nagaraj Shetti of HDFC Securities mentioned the index has revered the decrease helps of the earlier opening upside hole of February 2 and likewise the weekly 10-period
“The weekly 10 interval EMA has supplied essential assist to the index since previous few months and resulted in a sustainable bounce,” he mentioned.
Meanwhile, the index has damaged out of the falling channel on the hourly chart. “The total construction exhibits the index is recovering from decrease finish of the consolidation vary and might head in direction of the higher finish. Going forward, the 14,800 stage would be the fast hurdle, past which Nifty can transfer in direction of the 15,000 mark,” mentioned Gaurav Ratnaparkhi of Sharekhan.