The weekly pattern is a bullish reversal pattern and one can assume that Nifty50 will see some upsides in the days to come, said Independent Analyst Manish Shah.
“On the daily time frame, Nifty50 has not made a new low since June 16. This reluctance of the market to trade below the low, even after six days, does suggest that the market is not in a mood to trade lower immediately. The Nifty50 needs to break above 15,850 to signal a rally to 16,200-16,300. Support in Nifty is at 15,400. A break below the support and there could be a further drop to 15,100-15,000.
For the day, the index closed at 15,699.25, up 142.60 points or 0.92 per cent.
Milan Vaishnav, Founder & Technical Analyst at Gemstone Equity Research, said that the level of 15,700 will act as an inflection point for the Nifty50. If the index stays below this point, then it might well consolidate in a defined range again. However, there are greater possibilities of it moving past 15,700 and inch higher towards 16,000 levels.
Nagaraj Shetti, Technical Research Analyst,
Securities, said the short-term trend of the Nifty50 continues to be positive.
“Having placed at the significant overhead resistance at 15,800 level, there is a possibility of one more leg of small downward correction from the highs of around 15,800-15,900 levels by next week, before showing any decisive upside breakout,” he said.
of Securities said the buying was seen on the index at declines. He noted that the index outperformed the broader market to close with gains of around 490 points for the day.
“It formed a Bullish candle on a daily and weekly frame. Now, it has to hold above 33,500 for an up move towards 34,000 and 34,250 zones whereas supports are placed at 33,333 and 33,000 zones,” he said.
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