NEW DELHI: Nifty50 on Monday topped the 15,750 mark and ended up forming a small bullish candle on the daily chart. Analysts said while some cautiousness has been observed at higher levels, the 16,000 level is a real possibility. They expect the 15,600-550 zone to act as the immediate support for the index.
For the day, Nifty50 closed at 15,751, up 81.40 points or 0.52 per cent.
Chandan Taparia of Motilal Oswal Securities said the index has been forming higher highs and lows for the last three sessions.
“It has to hold above 15,700 to witness a bounce towards fresh life-time high of 16,000. Downside supports exist at 15,550 and 15,431 levels,” Taparia said.
Independent analyst Manish Shah said Nifty50 has continued to see incremental gains. “The index is in a strong momentum, as the ADX has curved up and MACD is in a buy mode. A slow creeping uptrends can last a fair bit of time and markets can remain elevated for a long time,” Shah said.
“Nifty50 rally could continue for some time and the preferred trades should be on the long side of the market,” he said.
Shrikant Chouhan of Kotak Securities said the trading range for Nifty50 is not expanding, which is an indication of cautiousness at higher levels.
“Technically, the 15,800 level will be a major obstacle for the market and Nifty’s sustenance above 15,800 level would invite short coverings in the market,” Chouhan said, adding that falling below 15,700 level may drag Nifty towards 15,600-15,550 level,” he said.
