Chart alert! Nifty Infra index shows major structural rally is building up
, ET CONTRIBUTORS|
Updated: Oct 24, 2017, 02.53 PM IST
Is there something brewing on the infrastructure counter on Dalal Street? Well, technical indicators do hint of a major structural rally building up.
The formation of a large bullish pattern, called Ascending Triangle, was observed on the weekly charts of the Nifty Infra Index. The 3,400-3,450 zone has seen formation of multiple tops since last four years, beginning 2014.
Any breakout from this formation would mean a multi-year breakout for the index. A similar Ascending Triangle was observed also on the monthly chart of the Nifty Infra Index. It is important to note that patterns are fractal in nature. But since this pattern appears on both weekly and monthly timeframe charts, it lends more strength and validity to the pattern formation.
This allows one to reach a fair conclusion that the Nifty Infra Index is readying itself for a multi-year breakout and is likely to test the 4,500-4,700 levels in the coming months.
(Milan Vaishnav, CMT, MSTA is Consultant Technical Analyst at Gemstone Equity Research & Advisory Services, Vadodara. He can be reached at milan.vaishnav@equityresearch.asia)
The formation of a large bullish pattern, called Ascending Triangle, was observed on the weekly charts of the Nifty Infra Index. The 3,400-3,450 zone has seen formation of multiple tops since last four years, beginning 2014.
Any breakout from this formation would mean a multi-year breakout for the index. A similar Ascending Triangle was observed also on the monthly chart of the Nifty Infra Index. It is important to note that patterns are fractal in nature. But since this pattern appears on both weekly and monthly timeframe charts, it lends more strength and validity to the pattern formation.
This allows one to reach a fair conclusion that the Nifty Infra Index is readying itself for a multi-year breakout and is likely to test the 4,500-4,700 levels in the coming months.
(Milan Vaishnav, CMT, MSTA is Consultant Technical Analyst at Gemstone Equity Research & Advisory Services, Vadodara. He can be reached at milan.vaishnav@equityresearch.asia)
