NEW DELHI: Nifty50 on Thursday rose for the second straight session. The day saw the 50-pack index staging a smart 230-point recovery from the day’s low, as the index formed a Hammer-like candle on the daily chart. Analysts said that the index has defended the 100-day moving average well as it looks to chalk out a near-term bottom. Till that is achieved, the ongoing consolidation will continue, they said.
Aditya Agarwala of YES Securities said, “The index has taken support at 14,300, the lower end of the broad trading range, which also happens to be the trendline support.”
“Nifty50 has formed higher low and higher high. If the bulls manage to push the index beyond 14,600, short covering rallies could extend to levels of 14,700-14,850. On the downside, 14,450-14,300 are crucial support zones. The RSI has also moved upwards from the support level of 40, confirming a broad sideways consolidation phase so far,” Agarwala said.
For the day, the index closed at 14,581.45, up 76.65 points or 0.53 per cent.
ETMarkets.comMazhar Mohammad of Chartviewindia.in said that a smart recovery from day’s low of 14,353 levels depicted a Hammer-like formation, as the bulls tried to chalk out a near-term bottom around 14,300 level. “Considering the fact that Nifty50 has successfully defended its 100-day moving average, whose value is placed around 14,300 levels, a short-term bottom can be in place around these levels,” Mohammad said.
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ETMarkets.comGaurav Ratnaparkhi of Sharekhan said that the index tested the Wedge pattern breakout line as well as the 61.8 per cent retracement of the recent rise, but recovered.
“The overall structure shows that the bears aren’t allowing Nifty50 to move out of the consolidation phase and the short-term consolidation is likely to continue further. On the downside, 14,500-14,400 is the near-term support zone for the Nifty50,” he said.
