NEW DELHI: Nifty50 continued to face resistance around the 10,650 level on Thursday, but somehow managed to settle above the psychological mark of 10,600. The index formed a s mall bullish candle on the daily chart. Analysts say good follow-up buying can push the index above the resistance level in the near future.
A breakout above the 10,650 level can initiate an uptrend, taking the index to 10,750-10,840 levels, said Aditya Agarwala, Technical Analyst, YES Securities. Any failure to cross the said resistance will drag the 50-pack lower to 10,440 level, which has been acting as the lower end of the range so far, he said.
For the day, the index rose 40.40 points, or 0.38 per cent, to 10.616. Shetti said a move above the 10,650 level can have a further positive impact on the market going forward.
“A small body positive candle has been formed with a minor upper shadow. This pattern has been formed just below the key overhead resistance at 10,650 level. This could be a positive indication for Nifty and one may expect a breakout of the hurdle on the upside,” said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
The index has been consolidating between 10,450 and 10,650 levels for last nine sessions and requires a range breakout for the next leg of rally, said Chandan Taparia of Motilal Oswal Securities. He sees supports for the index at 10500 and 10,450 levels.
Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory at Chartviewindia.in, said after a break above 10,650, the hurdle at 10,710 level would not be difficult for the bulls to clear. On a contrary, if Nifty slips below 10,530, it can retest the low of 10,440. He advised traders to initiate positions above 10,650 for an initial target of 10,800.