There are no signs of weakness. If anything, momentum picked up after a couple of days of narrow range trading. That said, the index has been showing an overbought reading of 83 on 14-day relative strength index (RSI) and could face hurdles around record high levels.
If the index sustains above 17,833, it can head to test its April high of 18,114, said Mazhar Mohammad of Chartviewindia.in.
“Intraday weakness can be seen below 17,833 with initial targets placed in the zone of 17,764 and 17,724 levels. However, traders are advised to remain cautious about creating fresh long positions as some momentum oscillators on daily as well as weekly charts are in overbought zones,” Mohammad said.
Gaurav Ratnaparkhi, Head of Technical Research at Sharekhan said the index is set to test the crucial psychological mark of 18,000, which holds the key for further course of action.
“The prudent strategy for Nifty50 traders will be to use trailing stoploss mechanism where they can ride the trend and keep raising the reversal level higher. The near term support zone shifts upwards to 17,750-17,800. Thus reversal can be trailed below this support zone,” he said.
For the day, the index closed at 17,944.25, up 119 points or 0.67 per cent.
Rupak De, Senior Technical Analyst at
said Nifty50 has remained above the falling trend line, confirming the continuation of the ongoing bull run.
“The uptrend remains intact as the barometer index has not shown any weakness. The popular momentum oscillator is in a deep overbought zone, but has no bearish crossover, suggesting a continuation of bullish momentum. On the higher end, resistance is seen at 18000-18100. On the lower end, support is visible at 17,700.”
Nifty Bank
For the day, the banking index closed at 39,461.70, up 222.05 points or 0.57 per cent.
Chandan
of Securities said buying was seen on the index at every slight dip as it headed towards 39,500 level.
On the daily chart, the index formed a small Bullish candle with longer lower shadow. It has been forming higher highs from the last six sessions.
“It gave the highest daily close of the last 193 trading sessions. Now it has to hold above 39,250 zones for an upmove towards 39,750 and 40,000 levels whereas supports are placed at 39,000 and 38,888 zones,” Taparia said.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
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