A daily momentum indicator Stochastic and MACD have shown positive crossovers on the daily chart, which support the bullish momentum, said Sachin Gupta of Choice Broking, who said the index has moved above the upper Bollinger Band formation, which suggests the rally may continue further.
For the day, the index closed at 18,338, 176 points or 0.97 per cent.
“At present, the Index has immediate support at the 18,050 level while an upside move is expected till 18,500 levels,” Gupta said.
Chandan Taparia of Motilal Oswal Securities said the index formed a bullish candle on daily scale and has been forming higher lows for the last three sessions.
“On a weekly frame, it gave a range breakout and has been forming higher lows from the last eleven weeks in a row. Now it has to hold above the 18,250 level to extend its move towards the 18,500 level. On the downside, support is seen at the 18,050 and 17,947 levels,” Taparia said.
Mazhar Mohammad of Chartviewindia.in said that the index appears to have decisively emerged out of its three-week consolidation range of 17,947-326, as it witnessed sustained buying after gap ups in the last two trading sessions.
“This seems to have opened up a fresh leg of upswing with higher targets present around 18,500 levels,” he said.
Independent analyst Manish Shah said the MACD indicator is in the ‘buy’ mode and the directional movement continued to show strength. Any dips to the 18,050-18,100 zone will throw up buying opportunities, he said.
