Tech view: Nifty50 forms a small bullish candle, looks set to bounce
, ETMarkets.com|
Updated: Jan 04, 2018, 06.12 PM IST
NEW DELHI: The Nifty50 saw a smart comeback
on Thursday and closed above the psychological mark at 10,500. The index formed a small bullish candle on the daily chart. Going by what analysts are saying Nifty levels around 10,550 would now pose immediate hurdles for the index, while levels around 10,420 and 10,440 will offer support to it.
Looking at the price behaviour of last three days, bulls will naturally be more confident to conquer the top of 10,552 going forward. A few momentum oscillators on lower-time frame charts generated buy signals on Thursday, whereas the daily MACD turned away from its signal line without generating a sell signal, said Mazhar Mohammad, Chief Strategist - Technical Research & Trading Advisory at Chartviewindia.in.
Such a behaviour can be considered bullish. Mohammad believes as long as the Nifty50 sustains above 10,400, traders can remain on the long side.
The Nifty50 rose 61.60 points, or 0.59 per cent, to 10,504. The index has hit an all-time high of 10,552.
Chandan Taparia of Motilal Oswal Services said the Nifty50 saw sustained buying interest till the end of session, which indicates that the bulls are back to drive a fresh upmove.
The index has to hold above 10,450 to extend its move towards 10,550 and then 10,600 levels. On the downside, support is seen at 10,400 level, the expert said.
Mustafa Nadeem, CEO at Epic Research, said the Nifty50 has stiff resistance at 10,540, which will act as the Great Wall of China.
The bulls need to breach this level to take momentum further. Any breach of this level will further boost the momentum on the upside, while in short term, support is now placed at 10,450 and 10,460 levels, he said.
Looking at the price behaviour of last three days, bulls will naturally be more confident to conquer the top of 10,552 going forward. A few momentum oscillators on lower-time frame charts generated buy signals on Thursday, whereas the daily MACD turned away from its signal line without generating a sell signal, said Mazhar Mohammad, Chief Strategist - Technical Research & Trading Advisory at Chartviewindia.in.
Such a behaviour can be considered bullish. Mohammad believes as long as the Nifty50 sustains above 10,400, traders can remain on the long side.
The Nifty50 rose 61.60 points, or 0.59 per cent, to 10,504. The index has hit an all-time high of 10,552.
Chandan Taparia of Motilal Oswal Services said the Nifty50 saw sustained buying interest till the end of session, which indicates that the bulls are back to drive a fresh upmove.
The index has to hold above 10,450 to extend its move towards 10,550 and then 10,600 levels. On the downside, support is seen at 10,400 level, the expert said.
Mustafa Nadeem, CEO at Epic Research, said the Nifty50 has stiff resistance at 10,540, which will act as the Great Wall of China.
The bulls need to breach this level to take momentum further. Any breach of this level will further boost the momentum on the upside, while in short term, support is now placed at 10,450 and 10,460 levels, he said.
