Tech View: Nifty forms long bullish candle; buy on dips, say analysts
NEW DELHI: Nifty on Monday scaled a record closing high of 12,088.55 and formed a long bullish candle on the daily chart. The index made a higher high higher low for a third straight session.
Analysts are positive, but believed that the market breadth should be keenly followed. For now, they suggested traders to buy on dips.
“The index has broken out from an Ascending Triangle pattern neckline, which also was the previous all-time high (12,040), suggesting continued bullish stance in the coming session. A sustained trade above 12,050 will take it towards 12,155-12,240 range. Any intraday throwback to 12,040-12,050 range can be used to initiate fresh longs for a target of 12,155-12,240,” said Aditya Agarwala, Senior Manager at YES Securities.
For the day, Nifty jumped 165.75 points or 1.39 per cent.
“If Nifty crosses and sustains above 12,110, it would see further buying, which could lead the index towards 12,150-12,220. A break below 12,050 could take the index towards 12,000-11,970” said Rajesh Palviya, Head Technical & Derivative Research at Axis Securities.
Palviya added that the index looked to be in an uptrend from short and medium term and buying on dips should be a preferred strategy.
The daily strength indicator RSI and momentum oscillator Stochastic have both turned positive and are above their rRead More – Source