The Nifty50 on Monday extended its recent rally to secure a record high closing of 10,230. The index formed a Strong Bullish Candle on the daily chart and decisively broke out of its three-month-old channel.

The index is making higher top and higher bottom for the past few sessions and has been trading above all the short-term moving averages. Analysts see immediate resistance for the Nifty50 at 10,270 level and support around 10,170. The advance-decline ratio and strength in Bank Nifty50 index would be crucial indicators, they said.

Mileen Vasudeo of Arihant Capital Markets said if the Nifty50 breaks above the 10,270 level, it may test the 10,355 and later 10,435 levels in the near term. “If it falls below the 10,170 mark, it may test the 10,048 and 9,979 levels. The upside momentum will remain intact as long as the index holds above these levels. There is a higher probability that the index will hit the 10,350 level over the next few weeks,” Vasudeo said.

The 50-pack hit an all-time high of 10,242. At close, it was up 63.40 points or 0.62 per cent.

“Monday’s intraday price behaviour was quite encouraging, as the intraday dips from the record high levels were bought into. This adds credence to the buy-on-dips strategy. However, a negative advance decline ratio and a lack of contribution from Bank Nifty are pointing towards narrower participation in this leg of rally. Despite few negative signs, the trade continued to be on the long side,” said Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in.

Mazhar advised traders to hold long positions with a stop loss below 10,100 on a closing basis.