Nifty50 Share Price: Tech View: Nifty50 forms small bullish candle; further upside possible

NEW DELHI: Nifty50 on Wednesday rose for the third straight day and, in the process, breached its 20-day moving day on a closing basis. The index traded in a narrow range during the session after a gap-up start and, eventually, formed a small Bullish Candle on the daily chart. The index needs to stay above the bullish gap range of 17,674-622 for further upside.

For the day, the index closed at 17,780, up 203.15 points or 1.16 per cent.

The narrow range can be a cause of concern, said Mazhar Mohammad of Chartviewindia.in.

“In the next couple of sessions, it remains critical for the index to sustain above the bullish gap zone of 17,674-622 range. In that scenario, strength can expand towards the 18,045 level. In case, if Nifty50 closes below the 17,622 level, expect weakness in the near-term,” Mohammad said.

Ruchit Jain of 5paisa.com said Nifty50 has retraced 61.8 per cent of the recent corrective phase, which is placed at 17,700-17,800.

“If the index sustains above 17,800, the index could approach 18,000-18,050 in the near term. We continue with our optimistic stance on the index and advice to trade with a positive bias and look for buying opportunities in intraday declines. The immediate support for Nifty50 is now placed in the range of 17,675-17,600,” Jain said.

Independent Analyst Manish Shah said Nifty50 is moving within a symmetrical triangle. A move above 17,800 will trigger further upsides towards the 18,100-18,200 level, he said.

“Over the next couple of days Nifty50 will be buoyant and traders should remain on the long side of the market. The Nifty50’s support has shifted to 17,500-17,600. Any drop to 17,500-17,600 levels is a buying opportunity,” Shah said.