NEW DELHI: Nifty50 on Tuesday broke above a key resistance of 15,100 level on a closing basis. The index formed a small bullish candle on the daily chart. It was the second straight session when the index made a higher high-low formation.
Even as the index traded above the moving averages, analysts see a good possibility of it touching the 15,300 level and even all-time highs.
“Technically, Nifty50 has seen a breakout of the Falling Channel and sustained above the prior resistance levels on the daily chart, which suggests strength. Moreover, the index has taken good support at the 100-DMA and settled above the ‘Ichimoku Cloud’ formation that indicates continued upside move for the long term. An oscillator Stochastic & MACD also suggested positive crossover on the daily time-frame chart. At present, the index has support at 14,950 level, while on the upside resistance is seen at 15,300 level,” said Sumit Bagaria of Choice Broking.
For the day, Nifty closed at 15,108, up 184 points or 1.24 per cent.
ETMarkets.comGaurav Ratnaparkhi of Sharekhan said the index has crossed the 61.8 per cent retracement of February-April decline and looks to test the all-time high of 15,431.
“However, the rally towards the high is unlikely to be a one-sided journey. There can be intermittent pause and consolidation on the way up. The next hurdle is seen at 15,160 level, which is near the 78.6 per cent retracement of February-April fall. The index can witness a brief consolidation near this key Fibonacci level before extending higher. On the flip side, any minor degree dip is likely to find support near the 15,000-14,940 zone.
Chandan Taparia of Motilal Oswal Securities said the index took out the previous swing high hurdle at 15,044 with the opening gap itself, giving a consolidation breakout of last 41 sessions.
Check out the candlestick formations in the latest trading sessions
ETMarkets.com“Nifty50 has registered the highest daily close in last 43 days. The index managed to surpass its falling supply trend line and started to form higher highs and lows since last two sessions. Now, it has to hold above 15,000 level to witness a bounce towards 15,200 and 15,350 levels. On the downside, support exists at 14,900 and 14,800 levels,” he said.
Mazhar Mohammad of Chartviewindia.in believes Nifty needs to sustain above the bullish gap area present in the 15,043-14,938 zone.
“If this gap zone successfully offers support on dips, in course of time, the bulls can head higher to test their lifetime highs present around the 15,431 level. However, if the bulls fail to defend the 14,938 level on a closing basis, it can encourage the bears. Traders are advised to buy the weakness close to 15,000 level with a stop loss below 14,938 level on a closing basis,” he said.
