The index formed an indecisive candle, that resembled a Dragonfly Doji. On the weekly chart, the index saw positive close for the seventh consecutive session. Now holding above the 13,650 level would be key for Nifty to sustain the ongoing rally, said analysts.
This rally can be a cause for concern, hinting at outlandishly bullish sentiment, said Mazhar Mohammad of Chartviewindia.in. He said a close below 13,650 level can act as a harbinger of near-term weakness on the index.
For the day, the index closed at 13,756, up 15.80 points or 0.11 per cent.
ETMarkets.com“We keep a cautiously bullish outlook and suggest traders to be light on the long positions as the market is stretched for the short term. Any fresh aggressive buying should be avoided at current level. The immediate support for Nifty stands at 13,450 level,” said Nirali Shah of Samco Securities
Technically, said Shrikant Chouhan of Kotak Securities, the index is making a series of higher bottoms, which is broadly positive for the market.
Check out the candlestick formations in the latest trading sessions
ETMarkets.com
“Over the next few sessions, the 13,650 level should be the sacrosanct for trend-following traders. Above the same, expect the uptrend continuation wave up to 13,935-14,000 zone. On the flip side, a slip below 13,650 level could possibly trigger a quick correction till 13,500 level,” he said, and suggested that the broader outlook for the market still remains bullish.
