The index formed a small bullish candle on the daily chart with a long lower wick suggesting that the intraday downside was bought. Analysts said momentum is looking strong and in the near term, 15,850-16,000 levels cannot be ruled out. He said immediate support for the index is being seen in the range of 15,600-550.
Chandan Taparia Motilal Oswal Securities It believes that a sustained hold above the 15,600 level may push the index towards new life levels at 15,800 and 16,000. “Support exists at 15,550 and 15,431 levels,” he said.
For the day, the index ended with a gain of 114 points or 0.73 per cent at 15,690. Healthy gains were seen as the index confirmed the flag pattern breakout in the previous sessions.
Sumeet Bagdia Choice Broking Said Nifty is trading above Ichimoku cloud formation and its 9-21 day moving average with a positive crossover, which suggests bullish strength.
The Ichimoku Cloud Formation represents a collection of technical indicators that show support and resistance levels, as well as momentum and trend direction.
Gaurav Ratnaparkhi of Sharekhan said that Nifty 50 intraday may touch 16,000 level after breaking 15,700 level.
“The gap area between the 15,611 and 15,597 levels, which formed on the daily chart on June 3, will act as an immediate support zone,” he said.
Mazhar Mohammad of chartviewindia.in also stressed on the need to maintain the bullish gap zone of 15,611-597.
“The momentum is strongly biased in favor of the bulls and a higher target towards 15,850 cannot be ruled out. Failure to sustain above the level of 15,597 on a closing basis may act as an early sign of weakness and start may pull the index down in the U.S. at 15,459 levels. Our proprietary Twin Momentum Oscillator is still in sell mode,” he added.
The analyst advised traders to stay ‘neutral’ for long and asked intraday traders to trade below 15,590 for a modest Nifty 50 target of 15,590.
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