Monday move should be read as positive for the bulls as they manage to overcome intraday weakness witnessed in Friday’s session. “Ideally sustaining above 17,264 levels on Tuesday should push the index towards 17,600 level. A fall below the same should attract intraday selling pressure towards 17,100,” said Mazhar Mohammad at Chartviewindia.in.
On the monthly chart, the index made a Doji candle. Independent analyst Manish Shah said the index has not seen any range expansion candle in the last several months. MACD on the monthly remains in a bullish mode and the MACD line is flat, he said.
“Nifty is struggling to show a conviction close above 17,350, and this could be the level to watch for. A break above 17,350 will mean a rally to 17,600-17,650. On the lower side, support is at 17,250, a break below this will mean a drop to 17,050-17,100. Brace for extreme volatility in coming days,” Shah said.
The index closed the day at 17,339.85, up 237.90 points or 1.39 per cent.
Chandan Taparia of Motilal Oswal Securities said the index needs to stay above 17,250 for a bounce towards 17,500 and 17,777 levels. Taparia sees support at 17,180 and 17,000 levels.
Shirkant Chouhan of Kotak Securities said that 17, 425 would be a break-out level, breaching which a quick uptrend rally up to 17,475-17,550 is likely. This analyst also sees 17,250 as key support for the index.
