nifty50: Technical appearance: Nifty50 forms a bull candle; another rise is possible on Wednesday

NEW DELHI: Nifty50 on Tuesday it rose by nearly 2% and formed a rising candle on the daily chart. The index remained in the range of 15,200-15,400 for the last few sessions. But the opening of the gap on Tuesday helped the index overcome the obstacle and entered the resistance zone of 15,670-15,700.

Although analysts see chances of further growth, any such increase will be limited to the 15,700-850 range, they said.

“The area of ​​15,670-15,700 used to act as a zone of support and is now presented as a zone of resistance according to the principle of changing roles. Unless the 15,700 level is removed at closing, the Nifty50 could return to 15,400. Structurally, the Nifty50 is expected to see a consolidation where the narrow range will be 15,400-15,700, ”said Gaurav Ratnaparhi of Sharehan.



For the day the index closed at 15,638.80 points, increasing by 288.65 points or 1.88%.

Milan Vaishnav of Gemstone Equity Research said Tuesday’s return was highly anticipated and on track, thanks to RSI’s upward divergence over the past few days.

Vaishnava said the strong bullish candle reflects a focused consensus among market participants.

“The important thing is that a rising window appeared on the candle; this is the result of a gap upwards and is mostly resolved by the continuation of the trend, which is subject to confirmation. Aside from some consolidation that can be expected, the Nifty50 is likely to rise to the 15,700-15,750 range; this is the support of the pattern that he has broken on his way down. In the future, Nifty50 has a gap to negotiate between 15,800-15,160 levels, “he said.

However, Mazhar Mohamad of Chartviewindia.in said there could be strong sales pressure around 15,900 levels. The rise from current levels could be limited to 15,863, he said, noting that this is the peak of the Long Black Day formation, registered on June 16th.

“In addition, the lower end of the bear zone, the difference of 15,886 and 16,172 registered on June 13, is also close to current levels. Therefore, the rises seem to be limited between 15,850-900 levels. In the meantime, down, the ascending zone of the abyss on Tuesday from 15 419 and 15 382 can act as support if this retreat has legs up, “said Mohammed.


Exquisite bank


Chandan

of said that Nifty Bank is higher than its initial levels, even after wild fluctuations and set the day with profits of about 500 points.

It forms a small bullish candle on a day frame with longer shadows showing higher volatility. “Now it has to stay above 33,000, to rebound to levels of 33,500 and 33,750. Support for the index is at levels of 32,750 and 32,500,” Taparia said.

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

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