Nifty 50: Tech View: Nifty 50 remains in consolidation range; bias positive

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New Delhi: Nifty 50 broke a three-day losing streak on Monday as it formed a bullish candle on the daily chart. Analysts said the index may remain in a consolidation range with a positive bias till it breaks the 15,900 level with a decisive upside bias. They see strong support for the index at 15,700 level.

Nifty 50’s short term trend remains positive with range movement, says Nagraj Shetty

securities. He said the market is now showing signs of attempting a decisive reversal of the crucial 15,900 resistance level in the next couple of sessions.

“A sustained up-move above 15,900-15,950 is expected to pull Nifty 50 towards the next resistance of 16,300 in the near term. Immediate support is placed at 15,750,” Shetty said.



For the day, the index closed 83.30 points or 0.53 per cent higher at 15,835.35.

The hourly chart is showing that the index is trading near a descending trend line, beyond which an upward move will continue. Gaurav Ratnaparkhi of Sharekhan.

“Structurally, Nifty 50 is trending upwards towards 15,900-16,000. However, the 16,000 level is a major hurdle where the index may fall again. On the other hand, 15,650 and 15,500 provide short-term support. Negative ,” said Ratnaparkhi.

Milan Vaishnav, Founder and Technical Analyst, Gemstone Equity Research said that the 15,700 level was acting as a strong pattern resistance.

In terms of F&O, the 15700-strike Nifty 50 has seen the highest put writing activity and it is also the strike that holds the maximum put open interest, Vaishnav said.

“This means that this level is likely to act as a strong support for Nifty 50. As long as the index stays above 15,750, it is more likely to test the 15,900 level,” said the analyst. ”

Nifty Bank
Sandalwood

of Motilal Oswal Securities Said Nifty Bank saw follow-up buying and is trending up on lower time frame. After taking support near 33,500, the index bounced back towards 34,000 in the last hour of the session, forming a strong bullish candle on the daily frame.

“To move towards 34,250 and 34,500 it needs to be held above 33,750, while support is placed at 33,500 and 33,333 zones,” Taparia said.


(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. They do not represent the views of The Economic Times)

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