Nifty Analysis: Tech View: Nifty50 eyes Mt 15K now, but warrants lot of caution

NEW DELHI: Dalal Road merchants purchased into the dip within the morning session and took Nifty50 larger for the fourth straight session on Thursday. Within the course of, the index fashioned a bullish candle for one more day on the each day technical charts.

Nifty scaled one more file excessive, because it rose 105 factors, or 0,71 per cent, to 14,895. It moved in a 200-point vary throughout the session. Analysts consider the following cease for Nifty may very well be 15,000.

“A small optimistic candle was fashioned with a minor decrease shadow. Technically, this sample may sign continuation of the uptrend after the formation of a Excessive Wave sort complicated candle on Wednesday. Therefore, one could anticipate additional upside within the brief time period,” mentioned Nagaraj Shetti, Technical Analysis Analyst, HDFC Securities.

He believes the following upside goal to be watched is 15,475, which is the 1.618 per cent Fibonacci extension (taken from the swing excessive of January, 2020 and March 2020 low). “The speedy assist is positioned at 14,750,” he mentioned.

Try the candlestick formations within the newest buying and selling periods

However the huge rally in a brief span of time additionally means a few of the technical indicators are signalling that merchants ought to construct positions with a level of warning. The chance can also be heightened because the index is nearing the psychologically necessary 15,000 stage.

“The intraday dip in direction of 14,700 stage discovered consumers, which finally helped the index scale one more lifetime excessive. Nonetheless, 4 days of rally from the low of 13,596 seems to have dragged a few of the momentum oscillators into the overbought zone, and therefore, warning is warranted round these ranges,” mentioned Mazhar Mohammad, Chief Strategist – Technical Analysis & Buying and selling Advisory,

The MACD indicator has turned bullish with a purchase sign, nevertheless it has no worth at this juncture, as Nifty has already rallied round 1,500 factors from the current lows, mentioned analysts.

“In the meanwhile although, recent lengthy positions usually are not advisable. Courageous hearts who’re already lengthy are suggested to take care of a good cease under 14,714 stage on a closing foundation and journey the rally,” Mohammad mentioned.

One factor that every one technical analysts agree is that the general development is optimistic and Nifty will go larger regardless of some hiccups. And people hiccups can be utilized to construct recent lengthy positions.

“The index continues to maneuver in the next prime and backside formation on the hourly chart, indicating a optimistic bias. Nifty continues to be in an uptrend within the medium to long run, so shopping for on dips continues to be our most well-liked technique,” mentioned Rajesh Palviya of Axis Securities.

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