Tech View: Nifty bulls are back; risk-reward turns positive

The index has surpassed the initial resistance and has marched firmly towards the mean of the Bollinger Band, showing reinforcement in the momentum, said Osho Krishnan of Angel Broking.

“On an immediate basis, 17,200-17,300 is likely to provide strong support. The levels of 17,600-17,650 could be seen as the primary hurdle, followed by the recent swing high of the 17,800 zone,” he said.

For the day, the index closed at 17,463.80, up 197.05 points or 1.14 per cent.

Independent Analyst Manish Shah said Nifty50 offers a good risk to reward ratio at current levels.

“It is moving within a symmetrical triangle pattern. In a situation of contracting, volatility trend-following indicators will not work and in fact, it could be counterproductive. Nifty50 should see a rally to 17,670-17,700 and once this zone is surpassed there should be further upsides to 18,050-18,100,” Shah said.

Mazhar Mohammad of Chartviewindia, meanwhile, said none of the momentum oscillators that he tracks have generated a buy signal. He expects the Nifty50 to find some resistance at 17,536 level.

“If the bulls manage to push through that hurdle then strength in the index can extend towards 17643 levels. A close below the bullish gap zone of the day present at 17,339-306 level should weaken the upward momentum. Therefore for time being, short-term traders with long positions in the index should consider profit booking around 17,500,” he said, suggesting support for the index at 17,350.