NEW DELHI: Technical analysts believe the stage is set for the Nifty50 to rally above 14,900 level after Wednesday’s jump that came on the back of dovish stance in RBI’s monetary policy.
The 50-pack gained 135 points, or 0.92 per cent, to end the session at 14,819. Bank Nifty, which was in focus during the session, climbed 1.51 per cent to 32,991.
The market breadth saw some improvement and after a long time logged an advance-decline ratio of 4:1. A Long Green Candle closing at the highs of the day suggests buying interest is emerging.
“Nifty needs to break above the key resistance at 14,900 level. Once that happens, we should see a rally towards 15,300 and beyond that to 15,450 mark. A break above 14,900 level and the coil will unwound and one can expect a swift move,” said Manish Shah, Founder, Niftytriggers.com.
Buying was seen across all sectors. Banking stocks shone after RBI kept the policy rate unchanged and promised to keep printing money till the economy recovers completely. India VIX, the volatility indicator, also eased nearly 3 per cent.
Check out the candlestick formations in the latest trading sessions
ETMarkets.com“The volatility in the index has declined in the last 3-4 weeks. Nifty has not participated in the ongoing rally seen in most other equity markets around the world. Sooner or later, the index will play catchup,” Shah said.
Mazhar Mohammad, Chief Strategist at Chartviewindia.in, said, Nifty50 appears to be nearing an inflection point, as it has managed to sustain above its intra-day hurdles placed in the 14,750-800 zone.
“In fact a close observation of the last 10 sessions revealed the index is struggling to register a sustainable close above its 50-day simple moving average, whose value is placed around the 14,800 mark. Hence, a strong move beyond this hurdle can confirm the comeback of the bulls provided they close above 14,900 level in the next session,” he said.
ETMarkets.comAnalysts said it is critical for the bulls to sustain above 14,649 level to retain an optimistic stance as a close below that level can encourage the bears once again. “For the time being, traders are advised to shift focus on stock-specific opportunities, as a directional trade on the index will emerge only on a close above 14,900 level,” Mohammad said.
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