During the session, the index respected its 50-day simple moving average, whose value was placed at 14,793 level. It also continued to form higher highs and lows for the fifth session. Analysts said Nifty can see a brief consolidation in the 14,700-15,000 range in the coming days before it moves higher.
For the day, Nifty closed at 14,894, up 30.35 points or 0.2 per cent. Gaurav Ratnaparkhi of Sharekhan said the index stumbled near the daily upper Bollinger Band as well as the upper end of a rising channel on the hourly chart.
“The overall structure shows Nifty is on course to scale the all-time high of 15,431. However, it can now go for a brief consolidation near the 14,800-15,000 zone before heading higher,” he said.
ET CONTRIBUTORSMazhar Mohammad of Chartviewindia.in said the advance-decline ratio was skewed in favour of the bears, hinting at broadbased profit booking around the psychologically critical resistance at 15,000 level.
“If Nifty fails to sustain above 14,815 level on Friday, it can undergo some selling pressure with initial targets placed near 14,700 level. The market sentiment will remain positive as long as Nifty sustains above last Wednesday’s bullish gap area present in the 14,694-667 zone. A close above 15,000 level, meanwhile, may confirm strength for the bulls to push the index towards the 15,350 level,” he said.
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ET CONTRIBUTORSIndependent analyst Manish Shah said Nifty faces a major barrier in the 14,980-15,050 zone. Once it clears that area, the index may move higher towards the February highs in the 15,450-15,500 zone.
“A breakout above that zone would also mean a breakout from the Falling Wedge pattern. A breakout from the wedges is considered a trend continuation pattern. Nifty has shown an Island Reversal and this is a bullish reversal signal. Support for the index is placed in the 14,700-14,650 zone. Any short-term decline towards this range would be an opportunity to buy,” he said.
