NEW DELHI: Nifty50 broke above its crucial resistance at 15,150 level on Friday and formed a solid bullish candle on the daily chart, negating the formation of lower highs and lows. On the weekly scale, the index formed a Bullish Marabozu pattern. The index has set its sights on the 15,300 level, breaching which it can make fresh highs, analysts said.
“Nifty has seen a breakout from its Falling Trendline, as well as the upper band of Bollinger formation, which signals strength. Moreover, the index has formed a Bullish Marabozu Candle on the weekly chart, which signals further upsides in the coming sessions. The Stochastic oscillator and MACD indicator also suggested a positive crossover on the daily timeframe chart, which adds further strength to the counter,” said Sumeet Bagadia of Choice Broking.
Bagadia sees immediate support for the index at 15,000 level and resistance at 15,300.
For the day, Nifty closed at 15,175, up 269 points or 1.81 per cent. This was the highest daily close of the index in the last 51 sessions, said Chandan Taparia of Motilal Oswal Securities.
ETMarkets.comHe said the index has been forming higher top and bottom from the past three weeks on the weekly scale. “It has to hold above 15,050 level to witness a bounce towards 15,300 level and then the lifetime high of 15,431. Downside supports exist at 15,000 and 14,900 levels,” he said.
Mazhar Mohammad of Chartviewindia.in said the rally seems have surfaced on the back of strong short coverings in the financial space.
Check out the candlestick formations in the latest trading sessions
ETMarkets.comNifty needs to see some follow-through buying in the next trading session without violating the low of 14,985. As long as Nifty sustains above the said low, one can remain positive and expect it to retest of lifetime high at 15,431 level. However, the 15,336 level may pose some resistance. For the time being, any dip can be an opportunity to create fresh long positions,” he said.
Rohit Singre of
said the 15,100-15,000 range will act as a strong hurdle and if defended, the index can head towards its previous swing high. “The immediate hurdle is seen in the 15,250-15,350 zone,” he said.
Source Link
