NEW DELHI: Nifty50 on Thursday topped the 14,700 level and broke above the Inside Bar Candle that it had formed on the daily charts in the previous session. The index formed a higher low for the fourth straight session, but failed to close above its 50-day moving average. A move above the 14,740-750 range is a must for Nifty to retain its positive bias, said analysts.
None of the technical oscillators are making a compelling case for a sustainable bounce at this point in time, said Mazhar Mohammad of Chartviewindia.in, who said the index is also struggling around its 50-day simple moving average.
“In the next trading session, Nifty needs to sustain above 14,611 level to retain its positive bias. In the case the bulls takes it to 14,740 level and stays there for at least 30 minutes, the possibility of extending the bounce towards 14,920-15,000 zone will increase,” he said.
For the day, Nifty closed at 14,724 level, up 106 points or 0.73 per cent.
ETMarkets.comIndependent analyst Manish Shah said Nifty50 is showing a tendency to bounce off the lows. Any drop to 14,500 level would mean a buying opportunity, he said.
“If Nifty50 trades and holds above 14,750 level, expect a rally to around 15,050-15,000 zone in the next couple of days. Support for the index is seen in the 14,650-14,630 range. A break below this zone could mean a drop to 14,500 level,” Shah said.
Check out the candlestick formations in the latest trading sessions
ETMarkets.comGaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan, said the index has broken out of an Inside Bar pattern on the upside, which he said suggests the bulls are having an upper hand.
“Going ahead, the index is expected to continue with the recovery process. Structurally, it looks set to test the 15,000 level on the upside in the short term. On the flip side, the 14,600-14,550 zone will act as a near-term support,” he said.
