on Tuesday to settle at a record high level. At no point during the session, did the index fall below the 10,400 mark. The 50-pack ended up forming a solid bull candle on the daily chart, with analysts say suggests more upside in the index.
Nifty has been trading above its 5-day and 13-day exponential moving averages, but is still not in the overbought zone, suggests the 14-day relative strength index.
The index is all set to head towards a higher territory, said Chandan Taparia of Motilal Oswal Securities. "It needs to hold above the 10,380-10400 zone to extend its move towards the 10,550-10,600 region. Supports for the index are seen at 10,330 level," he said.
At close, the Nifty50 stood at 10,465, up 77 points or 0.74 per cent.
"It was heartening to see the bulls cement their gains with a small but solid bull candle after a channel breakout on Monday. The breakout above the 10,350 level is throwing up a new target around 10,690. However on the longer-term charts, critical resistance points are placed around 10,600 – 650 levels. Traders are advised to ride this rally by placing a stop loss below 10,400 level on a closing basis," said Mazhar Mohammad, Chief Strategist, Technical Research & Trading Advisory, Chartviewindia.in.
Rajesh Palviya, Head Technical & Derivatives Analyst at Axis Securities, said formation of higher high and higher low indicates a positive bias.
"The Nifty50 has decisively broken out its recent swing high of 10,409 on a closing basis, confirming higher top and higher bottom. At its current level, the bias remains bullish and the index is likely to scale the 10,490 and 10,520 levels," Palviya said.
On the downside, the 10,430 and 10,400 levels will remain an immediate short-term support zone, the analyst said. </span>
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