Tech View: Nifty50 forms bullish candle, eyes 16,500 level

The credibility of this upmove was enhanced as Nifty50 witnessed buying interest on dips, said Mazhar Mohammad of Chartviewindia.in. Mohammad said that the index can test its 200-day EMA, whose value is placed around 16,520 level if it were to sustain above the 16,187 level.

The 16,520 was the level at which successful upswing was capped in the past, he said.

“It remains critical for this index to clear the said hurdle to continue the expansion on the upside. Till then this pullback swing shall remain vulnerable to a sudden sell-off,” Mohammad said.

For the day, the index closed at 16,340.55, up 62.05 points or 0.38 per cent.

The momentum setups remain in buy mode on the daily chart, but it has reached the overbought zone on the hourly chart, according to Ruchit Jain, Lead Research,
5paisa.com.

“In case, if we see any negative crossover from the overbought zone on the hourly chart, we could see in-between declines in the index to relieve the overbought set ups. Incase of any declines, the immediate support for Nifty50 will be seen around the hourly 20-EMA around 16,220. On the flipside, the near term upside for Nifty50 is seen around 16,550-16,650 range where we could see confluence of resistances,” Jain said.

Rupak De, Senior Technical Analyst at

said that a higher top higher bottom formation is visible on the daily timeframe. Besides, he said that the Nifty50 has sustained above its major moving average suggesting a bullish trend.

“Over the short term, the index may remain positive as long as it sustains above 16100 with a potential to reach 16,450-16,500 over the short term,” he said.

Nifty Bank
Chandan

of Securities said Nifty Bank opened negative but managed to witness buying interest after taking support at 35,100.

“It formed a strong bullish candle on a daily scale and gave the highest daily close of the last thirty six trading sessions. It has started to form higher high-low with the support base gradually shifting higher. Now it has to hold above 35,500 to witness an up move towards 36,000 and 36,250.” he said.

The Motilal Oswal analyst said downside support for the index is placed at 35,400 and 35,250 levels.

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