NEW DELHI: Nifty saw follow-through buying on Tuesday, which helped it take out its immediate resistance at 11,650 on a closing basis. The gains after Mondays Hammer-like candle suggested a possible pullback. But a negative advance-decline ratio still raised questions over the strength of the pullback.
Besides, the index is fast approaching the upper end of the channel pattern at 11,680-11,690.
“A failure to take out this resistance may lead to profit booking and drag Nifty lower to 11,610, 11,570 levels. On the flip side, a sustained trade above 11,690 will extend the rally to 11,730 and 11,780, levels,” said Aditya Agarwala of YES Securities.
For the day, the index formed a small bullish candle on the daily chart. Nifty50 closed the day 72.70 points, or 0.63 per cent, higher at 11,661.
Ruchit Jain of Angel Broking said the NSE barometer could continue the momentum towards its 20-day EMA, which is placed at 11,700. “Followup gains above this level should ensure continuation of this bounce towards the hourly 200-SMA and the recent gap area between 11,770 and 11,800 levels. The lower time frame charts indicated a shift in the immediaRead More – Source
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