Nifty50 on Friday climbed for the sixth session in a row and, in the process, took out the 16,700 level on a closing basis. The index formed a bullish candle on the daily chart and a solid bullish candle on the weekly scale. Analysts largely see resistance for the index at 16,800-850 levels. They see a strong support for the index at 16,500 level.
Independent Technical Analyst Manish Shah said that the index has moved above its 20-week SMA and MACD has moved above its trigger line.
“This is a major buy signal on the weekly charts. On the daily chart, a slow stuttering rally in the last two days. The index is around its resistance zone of 16,800-16,850. Some sideways movement or a corrective decline is on the horizon. Support for the index is seen at 16,500. Any declines in Nifty will take a halt in the 16,500-16,550 range. If the index holds and moves above 16,600, there should be more upside to 16,700-16,750 going into the last week of July Expiry,” Shah said.
The index closed the week at 16,719.45 on Friday, rising 114.20 points or 0.69 per cent for the day.
During the week, Nifty50 successfully cleared the short-term resistance of 16,300 and also cleared the 100-day SMA, said Amol Athawale, Deputy VP for technicals at Kotak Securities.
“For traders, 16,800 and 169,50 would act as an immediate resistance zone while 16,500-16,350 could be the key support levels,” Athawale said.
Nifty Bank
Chandan of Securities said that the banking index extended its positive momentum towards the 36,800 level. It has consistently moved up, outperforming the broader market in the last five sessions.
For the day, the index formed a strong Bullish candle on the daily scale and gave the highest daily close of the last 65 trading sessions.
“It is forming higher highs-low for the last five sessions with support base gradually shifting higher. The index formed a Bullish candle on the weekly frame and has been forming higher bottoms fOr the last five weeks. Now it has to hold above 36,666 to witness an upmove towards 37,000 and 37,250. The downside support exists at 36,500 and 36,250 levels,” Taparia said.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
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