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Tech View: Nifty50 forms small bullish candle; may continue rise

The bulls continued to be in charge on Dalal Street for the ..

The bulls continued to be in charge on Dalal Street for the third straight session on Monday, helping the Nifty to close 47.74 points, or 0.46 per cent, higher at 10,379.

The market shrugged off global weakness and remained resilient in line with its Asian peers.

The index shuttled between 10,397 and 10,328 through the day, and ended up forming a bullish candle on the daily chart.

The 50-share index opened the day at 10,333 and remained in a positive territory through the day. However, the market witnessed stock-specific moves on both directions. As many as 26 stocks of the 50-share pack closed in the green, and the remaining 24 in the red.

“The Nifty formed a white body on candles. Apart from this, no significant formation was observed on the charts,” said Milan Vaishnav, Technical Analyst, Gemstone Equity Research and Advisory.

The market is very comfortably placed in a 27-month- long upward rising channel on the weekly chart. On the daily chart, it has broken out of a small falling channel that it had created since the beginning of 2018.

The index has been forming higher highs for last six trading sessions.

Analysts said the rally is likely to continue.

“This rally can be expected to extend up to 10,452 level and a decisive close above this hurdle shall strengthen the chances of an intermediate trend reversal in favour of the bulls,” said Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory,

He advised traders to remain long with a stop below 10,350 level on a closing basis.

“We expect this bounce to continue and see Nifty take some breather only in the 10,430-10,450 range where the 100- and 200-DMAs converge. We expect some consolidation there,” Vaishnav said.

Volatility measure India VIX jumped 0.32 per cent to 14.795.

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