Tech view: Nifty forms bullish candle for third session, likely to extend rally
, ETMarkets.com|
Feb 26, 2018, 05.26 PM IST
NEW DELHI: The Nifty50 on Monday settled above its 50-day EMA of 10,558, which proved strong resistance at least twice in recent times. The index formed a bullish candle for the third consecutive day, and formed higher high and higher low for the second session.
The MACD indicator signalled a positive trend with the MACD line all set to breach the signal line. The index may gain strength in the coming sessions.
“The index rallied over 200 points to top the 10,600 level from 10,400 mark in two sessions. It closed above its 50-day EMA to form a bullish candle on the daily scale, which indicated that the bulls are having an upper hand in the market on an immediate basis,” said Chandan Taparia of Motilal Oswal Financial Services.
On Monday, the index rose 91.55 points, or 0.87 per cent, to 10,582. The index needs to hold its support at 10,500 to extend the bounce towards the 10,620 level, Taparia said.
Nirav Chheda of Nirmal Bang Securities noted that the 50-day moving average proved a strong support for Nifty50 futures in last two years, but the index failed to get support from the same in the recent selloff.
If the index future manages to breach the 50-DMA level, currently placed at 10,600, it would be a big boost to Nifty50, he said.
Mazhar Mohammad of Chartviewindia.in believes the bulls are positioning themselves for a bigger rally towards the 10,900 level. The confirmation will come once the Nifty conquers the immediate hurdle at 10,630 on a closing basis, he said.
“It is important for the market to breach the resistance in the 10,640-10,650 zone with higher volume to ensure follow-up buying, else we may see a short-term correction,” said Mustafa Nadeem, CEO at Epic Research.
The MACD indicator signalled a positive trend with the MACD line all set to breach the signal line. The index may gain strength in the coming sessions.
“The index rallied over 200 points to top the 10,600 level from 10,400 mark in two sessions. It closed above its 50-day EMA to form a bullish candle on the daily scale, which indicated that the bulls are having an upper hand in the market on an immediate basis,” said Chandan Taparia of Motilal Oswal Financial Services.
On Monday, the index rose 91.55 points, or 0.87 per cent, to 10,582. The index needs to hold its support at 10,500 to extend the bounce towards the 10,620 level, Taparia said.
Nirav Chheda of Nirmal Bang Securities noted that the 50-day moving average proved a strong support for Nifty50 futures in last two years, but the index failed to get support from the same in the recent selloff.
If the index future manages to breach the 50-DMA level, currently placed at 10,600, it would be a big boost to Nifty50, he said.
Mazhar Mohammad of Chartviewindia.in believes the bulls are positioning themselves for a bigger rally towards the 10,900 level. The confirmation will come once the Nifty conquers the immediate hurdle at 10,630 on a closing basis, he said.
“It is important for the market to breach the resistance in the 10,640-10,650 zone with higher volume to ensure follow-up buying, else we may see a short-term correction,” said Mustafa Nadeem, CEO at Epic Research.
