Tech View: Nifty forms small bullish candle; a revisit of 16,000 level likely

During the day, the selling pressure was absorbed near the key hourly moving averages, said Gaurav Ratnaparkhi, Head of Technical Research at Sharekhan.

“The index witnessed a brief consolidation near 15,700-15,800 throughout the day and took a leap on the upside towards the end of the session. The hourly chart shows that the Nifty50 is moving up in an upward sloping channel and can test the upper channel line near 16,000. On the downside, 15,700-15,600 will act as a crucial support zone, which will provide a cushion on the downside,” Ratnaparkhi said.

For the day, the index closed at 15,850.20, 18.15 points or 0.11 per cent.

“For the coming session, 15,750-15,700 remains a strong support zone, and till the time we do not slide below it, one should continue with a buy-on decline strategy. On the flipside, 15,925-16,000 is considered a

wall. As of now, there is no indication of the market surpassing the 16,000, but the moment we do it, we are likely to witness a strong short-covering rally in the market,” said Sameet Chavan, Chief Analyst-Technical and Derivatives at Angel One.

Meanwhile, derivatives data, said Mazhar Mohammed of Chartviewindia.in, suggest if the Nifty50 can keep its head above 15,750-15,800, it will be seen inching higher towards 16,000. “It is also worth noting that the level of 16,000 has maximum Call open interest built up; it is likely to pose resistance to the index at this point. While the market inches higher and stays above 15,800, it will also try to fill the gap that exists between 15,800-16,200 point range,” Mohammed said.

Nifty Bank

Independent Analyst Manish Shah said the Nifty Bank is holding on to its support of 32,500, a sign of relief for the bulls.

“MACD moves into a buy mode. The last several MACD buy signals in Bank Nifty have resulted in a big rally. MACD also shows a positive divergence. The last few days show a clear change in sentiment for Bank Nifty as a series of green candles are suggesting that buyers are winning the daily tug-of-war.

Shah said Nifty Bank is breaking out of an inverse head and shoulder pattern, which is a bullish trend reversal pattern on the lower time frame.

All things are falling in place for a rally to 34,800-34,900. Support for Nifty Bank 33,200, he said.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)