The long bull candle on the daily chart indicated an upside breakout of the range movement and also immediate resistance of 17,500 level, said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
“This is a positive indication and one may expect further upside in the short term,” he said.
For the day, the index closed at 17,670.45, up 205.70 points or 1.18 per cent.
Rupak De, Senior Technical Analyst at LKP Securities said the index has resistance at 17,750-17,800, breaking which the index can move towards 18,000 level.
De sees support for the index at 17,500.
“The indicator setup across the frame frames is slowly tilting in favour of the bulls. Hence, sustaining above 17,442, an initial logical target of 17,814 looks inevitable in the next one or two trading sessions. There is also a bright chance of the index testing 18,000 level. Therefore, positional traders can remain long with a stop below 17,400 and look for a target placed in the zone of 17,900-18,000 levels,” said Mazhar Mohammad at Chartviewindia.in.
On the weekly time frame, Nifty50 has closed above its 20-period moving average and that the MACD has started to curl up, says Independent Analyst Manish Shah.
“The weekly time frame is showing a serious rally could be playing and eventually Nifty50 will surpass its previous swing high. On the daily time frame, Nifty gave a trend continuation signal. The spread between MACD and its signal line is widening and this is sign of increased momentum. The RSI is above 60 this also means that market momentum with the context of price analysis is suggesting an upward bias,” he said.
