IDEAL STOCK | Nifty50 :-
NEW DELHI: The Nifty50 on Thursday climbed nearly 2 per cent to end above the psychological mark of 10,300. The index, which saw a gap-up opening ended up forming a Bullish Marubozu candle, with almost no upper or lower wick, suggests the bulls dominated the session all through.
He said the index may extend its move towards 10,440, as long as it holds on to the 10,276 level. Supports are seen at 10,222 and then 10,180 levels, he said.
Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan noted that the Nifty50 tapped at the 40-day exponential moving average and closed just below the crucial hurdle.
“Recent history shows the key moving average has brought in a fresh round of selling each time Nifty50 was flirted with it. The same is plausible this time as well. The short-term momentum indicator has completed the pullback cycle till the equilibrium line, thus making a case for emergence of a new cycle,” he said.
For the day, the Nifty50 rose 196.75 points, or 1.94 per cent, to close at 10,325. With this, the index closed above its 20-day SMA, which supports bullish sentiment.
"On the hourly chart, Nifty50 continued to form higher top and higher bottom, which signals a short-term uptrend. We expect the rally to take Nifty towards 10,380-10,400 levels. But any violation of the 10,280 level may trigger profit booking,” said Rajesh Palviya of Axis Securities.
Nifty has registered the much elusive breakout above its 24-day-old descending channel, and has thereby confirmed strength in the bounce, if not the end of a correction.
"This breakout with a strong bullish candle resembles a Marubozu. The price behaviour accompanied with breakouts on the short-term charts is pointing towards a sustainable rally in the near future. Traders are advised to remain on the long side of trade as long as the Nifty50 sustains above the 10,200 level on a closing basis,” said Mazhar Mohammad of Chartviewindia.in.
