Tech View: Nifty50 makes strong Bullish candle; rally may continue

NEW DELHI: Nifty50 on Thursday jumped over 100 points and made a Solid Bull Candle on the daily chart. The tide has tilted in the favour of the bulls, analysts said, adding some of the momentum indicators, including ADX, are sending positive signals. But keep a close eye on Bank Nifty index movement, which is still trading below its 50-day moving average (DMA), they said. “Bulls appeared to have got a renewed lease of life, as the index shrugged off Wednesday’s Bearish Engulfing formation. Trade as of now looks to be on the long side. But the Bank Nifty is still trading below its 50-day EMA, rising doubts about the sustainability of this upmove. Traders are advised to cautiously continue their long side bets with a stop below 9,955,” said Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory at The Nifty50 soared 1.12 per cent or 111 points to settle at 10,096.40. The index formed higher-high higher-low formation and closed above its previous session’s high, which signals strength, Rajesh Palviya, Head – Technical & Derivatives Analyst at Axis Securities said. “Since past four sessions, Nifty is holding in short term support zone of 9,950, which is also its 20- and 50-Day SMAs. The chart pattern indicates that the index is likely to continue its rally towards 10,140-10,170,” Palviya said. Chandan Taparia of Motilal Oswal Securities said that the index made a strong Bullish candle and gave a closing, which was highest in last 14 trading sessions. “Now it has to continue holding above 10,050 to extend its move towards life-time high of 10,178, then 10,300 while on the downside supports are seen at 10,020, and then 9,950,” Taparia said.
Source: ET