Going forward, 23,000 is expected to play a decisive role in the index’s journey towards the upper band of the ascending channel located at 23,100-23,200, while on the downside, 22,800 is likely to act as support, experts said.
The market achieved the long-awaited level of 23,000 points on May 23, however the index failed to close above this due to profit-booking at higher levels. This was reflected in the charts where the Nifty 50 index formed a small-sized bullish candlestick pattern with a long upper shadow. Overall, the mood remains bullish, given the consistent gain of 2% over the last two weeks. However, volatility is likely to be high, especially ahead of the mega event, Lok Sabha election results, on June 4. 23,000 is expected to play a decisive role in the journey of the index’s rally to the upper limit. Experts said that the channel lies at 23100-23200, while on the downside, 22800 is likely to act as support.
The Nifty 50 index on Friday hit an all-time intraday high of 23,026.40 before closing the session at 22,957, down 10.6 points on below-average volumes. During the week, it increased by 2% and formed a strong bullish candlestick pattern on the weekly charts for another week.
Meanwhile, Bank Nifty continued to outperform Nifty 50, rising 203 points or 0.42 per cent to 48,972. The indicator formed a bullish candlestick pattern on the daily time frame. During the week, it gained 1.6 percent and a strong bullish candlestick pattern was seen on the weekly chart.
The market remained in a strong position as bulls continued to be in control on Dalal Street for the seventh consecutive session on October 9. Market sentiment was helped by buying in banking and financial services amid additional liquidity and regulatory measures announced by the Reserve Bank of India to boost economic recovery.
BSE Sensex rose 326.82 points to 40,509.49, while Nifty 50 jumped 79.60 points to 11,914.20, its highest closing level since February 20 this year and forming a bullish candle on the daily and weekly charts. The index rose more than 4 percent during the week.
Nagaraj Shetty said, “Recent bullish breakout of important trend line resistance (11,600) on weekly time frame (as per change in polarity), canceling bearish patterns on daily and weekly charts (by closing above 11,794) and doji patterns. To cancel.” , according to HDFC Securities technical research analyst Moneycontrol, according to the daily time frame chart Thursday – All this positive evidence points to a strong position for the market going forward.
Technically, such rejection of bearish patterns often results in continued sharp uptrend in the basis, he believes. He said the upside target for the next week is 12,250, while the immediate support is at 11,800.
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