Mazhar Mohammad of Chartviewindia.in advised traders to consider booking profits if the Nifty is unable to get past 9,520 levels in the coming session.
Driven by banking and auto stocks, the Nifty50 closed near 9,500 levels on May 28.
The index rose nearly 2 percent and formed bullish candle on daily charts again as closing was higher than opening ticks.
Experts expect the bullish momentum to continue in coming session if index surpasses its 55-day exponential moving average (DEMA).
Mazhar Mohammad of Chartviewindia.in advised traders to consider booking profits if the Nifty is unable to get past 9,520 levels in the coming session.
The Nifty50 opened higher at 9,364.95 and extended gains as the day progressed to hit an intraday high of 9,511.25 in late trade. The index closed at 9,490.10, up 175.15 points or 1.88 percent.
"To retain the bullish momentum the Nifty needs to get past its 55-day EMA (which is placed at 9,516) which offered resistance to the index at recent peak of 9,889 levels which was registered on last April 30," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
"Nevertheless a strong close above 9,500 levels can resume its uptrend in which targets beyond 9,900 can be expected. Meanwhile if index fails to sustain above 9,300 levels then it can consolidate in the zone of 9,300 – 9,100 levels," Mazhar Mohammad said.
The Nifty50 gained more than 5 percent in two straight sessions, but ended the May series with a loss of 3.75 percent and formed Hammer kind of pattern on monthly charts.
"Considering the aggressive Put writing at 9,000 level for the in the June Options, long build up by the FIIs' in the Index Futures segment during the last few days and lower stock futures Open Interest as compared to average of the last one year-which in-turn Indicates lower leveraged positions, and fall in the VIX-Fear Index, we believe that one should remain optimistic for the June series with the stop loss of 9,000 levels," Nandish Shah, Technical Research Analyst at HDFC Securities said.
On the higher side, 10,000-10,200 level will act as a resistance where calls have been written, he feels.
The Bank Nifty also opened higher at 18,924.45 and hit an intraday high of 19,455.55 in late morning deals, but it shed some gains before signing off the session at 19,169.80, up 459.25 points or 2.45 percent. The index formed bullish candle on daily charts.
