Tech View: Rapidly rising candle in Nifty, index 16,800 . ready to leap towards
nifty 50 Opened on a negative note at 16,263.85 and closed at 16,243.85 low. However, during the day, buying took place at lower levels to take the index higher to 16,492.80. Eventually it closed at 16,478.10, up 121.85 points or 0.74 per cent.
Rupak Dey, Senior Technical Analyst
, said the daily RSI is in a bullish crossover and rising. “In the near term, the trend may remain positive as long as it stays above 16,400. At higher levels, resistance is visible at 16,600/16,800,” he said.
Earlier in the day, Nifty opened near its short-term 20-DMA, which is currently at 16,294, said analysts. However, it soon found support near that level and was up after a short-covering fueled rally.
Milan Vaishnav, Founder & Technical Analyst, Gemstone Equity Research said, “While the index formed a strong white bodied candle indicating directional consensus among market participants, Nifty also moved above the crucial 16400 level.”
“In the process, the index has shifted its most immediate support to 16,400. As long as the index keeps its head above this point, the move is more likely to continue. ,
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan Buy said, Nifty tested several support parameters which were present near 16,300, including 20-DMA, a descending trendline and lower end of an ascending channel.
“Daily Momentum Indicator has been in bullish mode while Hourly Momentum Indicator developed a positive divergence and started a new upward cycle. This suggests that Nifty 50 is jumping towards the junction of Swing High and Daily Upper Bollinger Bands. ready to be installed, which is close to 16,800.”
Bank Nifty also opened at 34,802.25 and fell to a low of 34,659.10 during the day. However, buying around the lower levels pushed the index higher to 35,149.10. The index closed 0.40 per cent higher at 35,085.45.
“Bank Nifty has formed a piercing line pattern at the end of a volatile trading session. Besides, Bank Nifty has moved back above 35,000 which indicates bullishness. In the near term, the trend may remain positive as long as it stays above the 35,000 level. At the higher end, resistance is visible at 35,500/36,000,” said D of LKP Securities.