Tech View: Nifty momentum seems to be turning in favour of the bulls

If Nifty manages to get past 10,967 level, then it can slowly head towards the 11,042 mark.

NEW DELHI: Nifty gained for the third straight day on Friday and formed a small bullish candle on the daily chart. On the weekly scale, the index formed an indecisive 'Dragonfly Doji' candle, but the momentum looks slightly in favour of the bulls. The index needs to hold the 10,850-70 levels to keep the positive momentum alive.

“The 10,860 level acted as a major support on Friday and it should be kept as final stop loss in the coming week for any long positions. Technically, the market has formed a higher bottom and validated the same by closing above the 10,870 level. Expect the index to top the 11,000 level in next few sessions,” said Shrikant Chouhan of Kotak Securities.

For the day, the index rose 98.30 points, or 0.91 per cent, to 10,946.

“If Nifty manages to get past 10,967 level, then it can slowly head towards the 11,042 mark. The index needs to sustain above 10,867, below which intraday weakness can be expected. For the time being, positional traders can go long on the index with a stop loss at 10,800 and look for a target of 11,140,” said Mazhar Mohammad of Chartviewindia.in.

Chandan Taparia of Motilal Oswal Securities said support-based buying emerged at lower levels during the week.

The index has started to form higher lows and supports are shifting higher. The index needs to hold above 10,850 to extend its bounce towards 11,050, Taparia said.
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