For the day, Nifty closed at 16,364, up 82.15 points or 0.5 per cent.
Shrikant Chouhan of Kotak Securities said the breakout formation suggests the continuation of an uptrend in the near future. “We are of the view that the 16,280-16,220 range would be a key support level for trend-following traders. Above the same, the range breakout formation is likely to continue up to 16,400-16,475 levels,” he said.
Gaurav Ratnaparkhi of Sharekhan said Nifty’s medium-term target is placed at 16,800. He said the hourly upper Bollinger Band has started moving higher after a contraction phase, which is making room for price action on the upside. The Bollinger Bands on higher time frames are already in expansion mode, he said.
“Structurally, the rally is developing as an impulse on the upside and is expected to continue with the upward trajectory. Thus on the higher side, the 16,400-16,450 zone will be the initial area to watch out for, with the potential to head higher to 16,800 level. On the other hand, the 16,200-16,160 zone will continue to act as a crucial support zone,” he said.
Independent analyst Manish Shah said MACD is in the bullish mode and so is the directional movement index: “R3 pivot on the monthly and weekly R1 pivot has confluence around 16,450-16,470. This is where Nifty could see a pause.”
Mazhar Mohammad of Chartviewindia.in said Nifty50 needs to sustain above 16,286 level on a closing basis to sustain an uptrend. In such a scenario, the index can move towards 16,500 and beyond that, a higher target of 16,700 can’t be ruled out, he said.
“A fall below 16,286 level will result in the failure of a breakout, dragging the index towards the 16,200-170 levels,” the analyst said.
