The index formed a Long Bullish Candle with a gapup start and the intraday upside gap remained unfilled, said Nagaraj Shetti, Technical Research Analyst at HDFC Securities. “This pattern could be a signal of a short-term bottom reversal in the market and the unfilled upside gap could be considered as an intraday bullish breakaway gap. One may expect further upside, and Nifty50 is likely to test the resistance in the 11,900-11,950 range over the next few sessions. The index has its immediate support at 11,740 level,” he said.
For the day, Nifty closed at 11,813, up 144.35 points or 1.24 per cent.
“Technically, we seem to be poised for the next leg of rally after the recent pause. A support base has been formed on Nifty50 in the 11,550-11,600 range and as long as this remains intact, the near-term trend looks firm,” said Ruchit Jain of Angel Broking.
Gaurav Ratnaparkhi of Sharekhan said the index was forming a base near multiple support parameters of last few sessions. “The overall structure shows Nifty is set to resume a bigger uptrend. From a short-term perspective, the index is heading towards the 12,000-12,025 range, which is the junction of the upper channel line, October high and the daily upper Bollinger Band. Once that level is taken out, the index will be set for a significant upside,” he said.
Aditya Agarwala of YES Securities said Nifty has broken out of the consolidation zone resistance at 11,750 level.
It ended trade at the 20-DMA resistance i.e. 11,825 and a sustained trade beyond this level can resume the uptrend and take the index higher to 11,900-12,000 levels,” he said.
“On the downside, the 50-DMA placed at 11,560 level will be a major support zone,” he said.
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