The short-term trend of Nifty50 continues to be positive with range movement, said Nagaraj Shetti of
Securities. He said that the market is now showing signs of attempting a decisive upside breakout of important resistance of 15,900 in next one-two sessions.
“A sustainable up-move above 15,900-15,950 is expected to pull Nifty50 towards the next resistance of 16,300 in the short term. Immediate support is placed at 15,750,”Shetti said.
For the day, the index closed at 15,835.35, up 83.30 points or 0.53 per cent.
The hourly chart shows that the index is trading near a falling trendline, beyond which the upside momentum will pick up further, according to Gaurav Ratnaparkhi of Sharekhan.
“Structurally, the Nifty50 is inching towards 15,900-16,000 on the upside. The level of 16,000, however, is a key barrier where the index can stumble again. On the other hand, 15,650 and 15,500 are short term supports to provide cushion on the downside,” Ratnaparkhi said.
Milan Vaishnav, Founder & Technical Analyst at Gemstone Equity Research said that the 15,700 level had been acting as a strong pattern resistance.
In F&O terms, 15700-strike Nifty50 has seen highest PUT writing activity and it is also the strike that holds maximum PUT open interest, Vaishnav said.
“This means that this level is likely to act as strong support for the Nifty50. As long as the index holds above 15,750, it has greater chances of testing 15,900 levels,” the analyst said.
Nifty Bank
Chandan
of Motilal Oswal Securities said that the Nifty Bank saw follow up buying and is trending upwards on shorter time frame. After taking support near 33,500, the index jumped in last hour of the session and inched towards 34,000, forming a strong Bullish candle on the daily frame,
“It has to hold above 33,750 for an up move towards 34,250 and 34,500 whereas supports are placed at 33,500 and 33,333 zones,” Taparia said.
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