Analysts are positive, but believe the ongoing momentum can turn sideways if the index fails to reclaim the 15,000 level soon.
Mazhar Mohammad of Chartviewindia.in said his proprietary twin momentum oscillators have generated a buy signal after Wednesday’s rally. He advised positional traders to go long on Thursday and look for an initial Nifty target of 15,271 level.
“If the bulls fail to register a close above 15,000 level, the trend shall continue to be sideways. A bearish trend will resume only on a close below 14,635 level. As the bulls have successfully defended the right technical support point placed around the 14,600 mark, positional traders can consider buying the dip with a stop loss below 14,700 level on a closing basis,” he said.
For the day, the index closed at 14,800, up 92.45 points or 0.63 per cent.
“The formation of two long-range candles of – a bearish one on February 22 and a bullish one today –
And small bearish candle of February 23 signals the chances of a bullish reversal of the market. This pattern needs to be confirmed with further upmove in the subsequent sessions,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Check out the candlestick formations in the latest trading sessions
ETMarkets.com
Shetti said Wednesday’s price action was similar to the six-day decline in the later part of January, which resulted in a sharp upside on the day of the Union Budget 2021. “This is a positive indication. If the reversal pattern gets confirmed in a day or two, one can expect continuation of the upside momentum,” he said.
“If Nifty50 manages to surpass the 15,080-15,220 zone, we may see the index resume its higher degree uptrend in the following days. A failure to do so will lead to retesting of the 14,900-14800 zone. We would like to stay neutral while stepping into the important monthly expiry session on Thursday,” said Sameet Chavan of Angel Broking.
