Tech view: Bulls in drivers seat, likely to strengthen momentum
NEW DELHI: Another day of strong gains in the Nifty50 put the bulls in drivers seat on Tuesday.
A gapup opening and a close near the days high helped the index breach a falling trendline and a swing high of 10,893. It went on to take out the May high of 10,929, instilling confidence among traders. The momentum is positive and any dip should be bought into, analysts said.
The index managed to surpass the 78.6 per cent retracement of the fall from 11,171 to 9,951 level on a closing basis, said Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan.
“The key Fibonacci level was placed at 10,910. The bulls seem to be pushing the index higher. The daily upper Bollinger Band, which had become flat over last several sessions, has started expansion along with the price action. The index now looks set to test its weekly upper Bollinger Band, which is close to 11,100,” Ratnaparkhi said.
For the day, the index rose 94.35 points, or 0.87 per cent, to close at 10,947.
Momentum oscillators like daily RSI is giving a positive indication, which suggests strengthening of the upside momentum, said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
“Thanks to the upside breakout of a key hurdle and a larger consolidation pattern, one may expect further rise in the Nifty. The next upside level to be watched is at 11,100,” he said.