Mazhar Mohammad of Chartviewindia.in advised traders to wait for a strong breakout above 15,900 level, before creating long positions on the index.
“It looks critical for the index to sustain above 15,834 level to retain a positive bias. In that scenario, a breakout above 15,900 level is likely. In case of a strong breakout above 15,900 level, a sustainable upswing will emerge with a target of 16,300 level,” said he.
For the day, the index closed at 15,885, up 122 points or 0.77 per cent.
“The overall structure shows Nifty50 has gathered the strength to surpass the barrier at 15,900. On its way up, it has crossed its crucial short-term moving averages. Also, the short-term momentum indicator is prepared for a new cycle on the upside. We expect Nifty50 to enter the hurdle zone of 15,900-16,000 with the potential to surpass that. The 15,800-15,750 zone will act as a near-term support,” said Gaurav Ratnaparkhi of Sharekhan.
Independent analyst Manish Shah wants to see Nifty50 close above the gap resistance zone at 15,830-15,880 convincingly. He said the index crossed above its 20-day moving average but believes a close above the recent high at 15,960 will be convincing.
“Support for the Nifty lies at 15,750, which should hold if an upside breakout has to manifest. If Nifty50 manages to break above 15,960 level, expect the market to see a swift rally to 16,200-16,300 zone. This could be the biggest buying opportunity in Nifty50 in two months,” he said.
Rohit Singre of LKP Securities said traders can start locking gains on every rise. For Singre, only a decisive close above 16,000 level would give a breakout signal. This analyst sees immediate support for Nifty50 in the 15,815-15,750 range.
