Tech view: Nifty50 above 50-day SMA; further upside possible

For the day, the index closed the day at 16,132.90, up 143.10 points or 0.89 per cent. This was below the 50-day EMA of 16,150 but above the 50-day SMA of 16,120.

Nagaraj Shetti of HDFC Securities said that a long lower shadow for the candle, indicates a continuation of upmove post upside breakout of the crucial overhead resistance at 15,900 level.

“After the upside breakout of the hurdle at 15,900, the market is now advancing towards another hurdle of the previous opening downside gap of June 13 at 16,175 level. Hence a sustainable move above 16,200 could open further sharp upmove ahead. The immediate support is placed at 16,000 level,” Shetti said.

Osho Krishan of Angel One said the short-term structure seems bullish as the index authoritatively reclaimed the psychological mark.

“Also, the buying interest towards the fag end augurs well for the market participants, with the Nifty50 closing near the day’s high. From here on, the unfilled gap on the downside of the 16,000-16,045 odd level should act as the demand zone and cushion any minor blips. While on the flip side, the 16,200 sub-level is likely to be seen as the immediate resistance,” Krishan said.

Milan Vaishnav, Founder & Technical Analyst at Gemstone Equity Research said that Nfty50 has filled up the gap that was created between 15,900-16,200 levels. “If the Nifty50 stays above 16,150, we may see some further upsides until 16,250-16,290 levels. Any slip below 16,000 will result in some minor consolidation for the markets,” he said.

Nifty Bank

Nifty Bank closed the day sharply higher and in the process broke above the falling trendline, according to independent analyst Manish Shah . The breakout was with a gap, making it a breakaway gap.

“The pattern formed is also an island reversal. These are multiple reversal patterns. Nifty Bank is now gathering strength and opportunity lies ahead for a rally to 36,100-36,200. Major support is at 33,800. Any short term drop to 34,200 is a buying opportunity,” Shah said.