nifty50: Tech view: Market trend likely to remain positive, Nifty moving to 16,800 in near term

After a volatile session, NSE Nifty50 index closed with minor cuts but it formed a small bullish candle on the daily charts as bulls managed to defend the crucial support of 16,400 level.

It opened on a negative note on Monday at 16,530.70, and slid to as low as 16,444.55 level. However, at lows, buying emerged to take the index to as high as 16,610.95. Ultimately, it closed down 14.75 points or 0.09 per cent at 16,569.55.

Nagaraj Shetti, Technical Research Analyst,

Securities, said, a small positive candle was formed on the daily chart with minor upper and lower shadow, which indicates high wave type candle formation.

“Normally, a formation of such patterns after a reasonable up move or down moves calls for reversal on either side. But, having formed this pattern amidst a range movement, the predictive value could be less. Nifty has sustained above the cluster supports of around 16,400-16,450 levels as per change in polarity and daily 10 and 20 period EMA. As long as the area of ​​16,400 level is protected, there is a possibility of upside bounce in the market,” he added.

Shetti said there is a possibility of Nifty moving towards the upper range of 16,800 levels in the short term.

Rupak De, Senior Technical Analyst at

, said on the lower end, bulls have protected the crucial support of 16,400, which led to a rally towards 16,600. “The trend is likely to remain positive for the near term as long as 16,400 is held on a sustained basis. On the higher end, resistance is seen at 16,800.”

The solid defense by bulls at around 16,400 level gas helped the index maintain the higher top higher bottom formation on the daily chart. The hourly chart shows that the recent dips are getting absorbed near the hourly lower Bollinger Band, said Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by .

“In terms of the levels, 16,400 has been acting as a critical support for the short term. The short term stance continues to be positive as long as the Nifty stays above 16,400 on a closing basis. Thus, the index is expected to test 16,800 on the upside with a potential to stretch till 17,000,” he said.

Bank Nifty

Bank Nifty also opened lower at 35,159.15, and fell to a low of 35,072.30 during the day, but it also saw buying around the bottom to surge to as high as 35,424.50. The index closed up 0.1 per cent at 35,310.20.

“The Bank Nifty has remained below the 50 EMA throughout the session. The momentum oscillator is a bullish crossover. Going forward, Bank Nifty may remain sideward to positive as long as it holds the crucial support of 35,000. On the higher end, resistance is visible at 36,000,” said De of LKP Securities.

(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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