Tech view: Bullish Engulfing candle on charts shows Nifty is looking up

Tech view: Bullish Engulfing candle on charts shows Nifty is looking up


NEW DELHI: Nifty50 staged a smart recovery on Tuesday and shut shop around 11,800 level. In the process, the 50-stock pack formed a ‘Bullish Engulfing’ candle on the daily chart.

Analysts said the index consolidated in the 11,850-11,650 range for past seven sessions and a breakout of the range is necessary for any strong directional move.

“If the Nifty crosses and sustains above 11,820, it would see buying towards 11,860-11,890 levels in the extreme short term. Failing to hold above 11,730 level should cause it drift towards the 11,700-11,680 range,” said Rajesh Palviya of Axis Securities.

For the day, the index rose 96.80 points, or 0.83 per cent, to end at 11,796. In last hour of the session, the index saw a breakout above the resistance end of a ‘Falling Channel’ on the hourly chart, said Ruchir Jain of Angel Broking.

“We expect Nifty to continue this positive momentum and resume its higher degree uptrend. The immediate resistance is placed at 11,845, but we expect it to be broken soon, which could then lead Nifty up to 12,000 level soon,” Jain said.

Gaurav Ratnaparkhi of Sharekhan said if the bulls manage to cross the swing high of 11,844, it can leap towards 12,000.

Nagaraj Shetti of HDFC Securities sees the overhead resistance for next 1-2 sessions in the 11,800-850 range.

Gaurav Bissa of LKP Securities sees Nifty’s immediate support in the 11,730-11,680 range. He said Nifty Bank has seen a breakout of the small bullish flag, suggesting that the current move may sustain.

For the time being, Mazhar Mohammad of Chartviewindia.in advised traders to create fresh longs in the index only on a breakout above 11,843 level.





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