Analysts said there are no signs of weakness and momentum on the index looks pretty strong, but feel the index could take some breather near the 17,200 level after seven days of relentless buying.
Nifty50 is gliding smoothly in the uncharted territory, said Gaurav Ratnaparkhi, Head of Technical Research at Sharekhan.
“On its way up, Nifty has surpassed the 17,000 mark and is approaching the short-term target of 17,200. Over there, it is likely to take some breather before stretching higher. Traders can consider booking partial profit for their trading positions near the 17,200 level and tighten the stop loss for the rest of the long positions. The 17,000 level will now act as a support as per the principle of role reversal,” said Ratnaparkhi said.
Palak Kothari of Choice Broking said the index has given a breakout of the rising trendline and it is trading above the upper band of the Bollinger formation, which suggests bullish sentiment on the counter.
“It has been trading above all the important key indicators, which adds positive strength further. Nifty50’s immediate support as shifted to the 17,000 level while resistance is seen at the 17,200 level,” Kothari said.
The index hit an all-time high of 17,153, before closing the day at 17,132, up 201.15 points or 1.19 per cent.
“Though the index is in blue sky territory, there seems to be potential resistance around the 17,150 level from where a reaction is possible in the opposite direction. In case the bulls manage to get past this initial hurdle, they can extend the rally towards the 17,350 level. Any dips towards the 16,700 level, if sustained, can be an opportunity to create fresh longs for short-term trading,” said Mazhar Mohammad of Chartviewindia.in.
