Gaurav Ratnaparkhi of Sharekan said multiple support parameters such as the 61.8 per cent retracement of the previous rise from 15,450 to 15,915 level, the daily lower Bollinger Band, and the lower end of falling channels on hourly and daily charts were present near the 15,650-15,630 zone, which induced the bulls into the action.
Ratnaparkhi and a few other technical analysts see recovery ahead. For the day, the index closed at 15,722, up 42.20 points or 0.27 per cent.
“The Nifty50 is set to take a leap towards 15,900 level and once that level is crossed on a closing basis, the index can target the 16,400 level on the upside. On the downside, the 15,650-15,630 zone will continue to act as a crucial support zone on a closing basis,” he said.
Sumeet Bagadia of Choice Broking said the index has taken good support at the Lower Bollinger Band formation and has signalled a positive bias on stochastic indicator.
“On an hourly chart, the index has moved above the 21-hour moving average and also formed ‘Rounding Bottom’, which points to further recovery in the near term. The near term Nifty50 resistance is placed at 15,915 level, while immediate support comes in at 15,600,” Bagadia said.
Independent analyst Manish Shah said Friday’s Hammer was formed on a rising trendline and in the support zone of 15,600-15,650, which, he said, can turn out to be the best buying opportunity in the last four weeks.
“A bullish Hammer candle on the daily chart indicates that declines are being bought into. Nifty50 has to hold above 15,700 level to witness a bounce towards 15,850 and 15,900 levels. On the downside, support can be seen at 15,600 and 15,500 levels,” said Chandan Tapria of Motilal Oswal Securities.
