NEW DELHI: Nifty50 on Thursday made marginal gains, but closed above its crucial resistance level of 15,335 on a closing basis. The index made a Doji candle on the daily chart, which suggests indecisiveness among traders at higher levels. Analysts believe the index could face selling pressure near its lifetime high of 15,431.75 level in the coming days. They see the 15,250 level as immediate support for the index.
The last three sessions had positive closes, but no urgency was seen on part of the bulls to give the index a big push that is usually associated with a breakout.
“Nifty50 is now in the area of sellers. The size of the real bodies and volumes are also not showing any appreciable increase. Nifty needs to break above the resistance at 15,430 for the rally to continue. The breakout needs to be strong if the rally is to sustain. On the lower side, support is pegged at the 15,190 level. If Nifty50 breaks below 15,190-15,170, it could be time to get cautious in the market,” said independent analyst Manish Shah.
For the day, the index closed at 15,337.85, up 36.40 points or 0.24 per cent. This was the fifth day when the index formed a higher high and low formation.
ETMarkets.comMazhar Mohammad of Chartviewindia. said that the index appears to be headed to test lifetime highs present at 15,431 level post a close above 15,336 level. “However, Thursday’s rise could be because of F&O expiry-related factors. It looks critical for Nifty50 to sustain above 15,272 levels to retain positive bias. The initial target for the index is at 15,431 level. Beyond that, the gains may get extended to the 15,650 level. If Nifty50 fails to sustain above 15,272 on a closing basis, expect it to slip into a corrective and consolidation phase,” Mohammad said.
Check out the candlestick formations in the latest trading sessions
ETMarkets.comThe analyst said that some of the momentum oscillators on lower time frame charts are slipping into the overbought zones and some caution is also warranted.
“The index has crossed a crucial March swing high of 15,336 on a closing basis. It is now a stone’s throw away from the all-time high of 15,431. Once that gets taken out, the index can head towards the upper end of a rising channel, which is near 15,700. On the flip side, any minor degree dip is likely to find support near 15,200-15,250,” said Gaurav Ratnaparkhi of Sharekhan.
Rohit Singre of LKP Securities sees support for the index at 14,275. Singre believes that any break below the said level may see more profit booking towards the 15,200 level. “A stiff hurdle is still in the 15,430-15,470 zone,” he said.
