Monday’s candle was made after back-to-back indecisive candles seen in the last couple of sessions, and this instilled confidence among traders.
Analysts said there is a good possibility of Nifty50 reclaiming the 15,700 level in the coming days, as long as it stays above a crucial support at 15,370.
For the day, the index rose 147 points, or 0.95 per cent. During the early trade, the index had slipped to a low of 15,374, before rebounding sharply.
“Nifty50 had a minor dip at the beginning of the session, due to which it filled up the recent gap area of 15,394-15,384. It also tested a rising trendline on the hourly chart and its 20-hour moving average, before seeing a round of buying,” Gaurav Ratnaparkhi of Sharekhan said while adding that the expanding hourly and the daily upper Bollinger Bands are supporting the bulls on the way up.
Ratnaparkhi said the index may see the 15,700 level in the coming days. He sees short-term support in the 15,400-1,5370 range.
Monday was the seventh consecutive positive close for Nifty from a low of 14,884, hit on May 20.
“A breakout from the 50-day-old descending channel on May 18 had opened up a higher target placed around 15,850. However, the evolving line studies are projecting a near-term hurdle around 15,720 level,” said Mazhar Mohammad of Chartviewindia.in.
Mohammad said traders can look for a target of 15,750-850 levels. He said it is critical for the index to sustain above 15,374 to retain positive bias. The analyst advised traders to use any intraday Nifty50 dips to create fresh longs, with a stop loss below 15,374 on a closing basis.
Rohit Singre of
said a decisive close above the 15,500 level has strengthened the overall structure for Nifty50, and advised traders to use any dip in the market to buy stocks.
