Tech View: Nifty types bullish engulfing candle, index all set to leap in the direction of 16,800

The NSE Nifty 50 index, after falling for 4 straight days, noticed a constructive shut on Thursday. The index in course of shaped a bullish engulfing candle on day by day charts, which suggests bullishness.

The Nifty50 opened on a unfavourable word at 16,263.85 and slid to as little as 16,243.85. Nevertheless, throughout the day, shopping for emerged at lows to take the index to as excessive as 16,492.80. Ultimately, it closed up 121.85 factors or 0.74 per cent at 16,478.10.

Rupak De, Senior Technical Analyst at

, mentioned the day by day RSI is in bullish crossover and rising. “Over the close to time period, the pattern might stay constructive so long as it stays above 16,400. On the upper finish, resistance is seen at 16,600/16,800,” he mentioned.

Early within the day, the Nifty opened close to its brief time period 20-DMA, which presently stands at 16,294, analysts famous. Nevertheless, it quickly discovered assist close to that degree and was up following a short-covering fueled rally.

“Whereas the index shaped a powerful white-bodied candle which mirrored directional consensus among the many market members, Nifty additionally moved previous effectively above the essential 16400 ranges,” mentioned Milan Vaishnav, Founder & Technical Analyst, Gemstone Fairness Analysis.

“Within the course of, the index has shifted its most speedy assist larger at 16,400. As long as the index retains its head above this level, there are better probabilities of this transfer getting prolonged additional.”

Gaurav Ratnaparkhi, Head of Technical Analysis, Sharekhan by , mentioned, Nifty examined a number of assist parameters on the draw back, which had been current close to 16,300, together with 20-DMA, a falling trendline and decrease finish of a rising channel.

“The day by day momentum indicator has been in bullish mode, whereas the hourly momentum indicator developed a constructive divergence and began a brand new cycle on the upside. This implies that the Nifty50 is ready for a leap in the direction of the junction of the swing excessive and the day by day higher Bollinger Band, which is close to 16,800,” mentioned Ratnaparkhi.

Financial institution Nifty

Financial institution Nifty additionally opened decrease at 34,802.25 and fell to a low of 34,659.10 throughout the day. Nevertheless, shopping for across the backside led the index to as excessive as 35,149.10. The index closed up 0.40 per cent at 35,085.45.

“Financial institution Nifty has shaped a piercing line sample on the finish of a unstable buying and selling session. Moreover, the Financial institution Nifty has moved again above 35,000 suggesting bullishness. Over the close to time period, the pattern might stay constructive so long as it stays above 35,000 ranges. On the upper finish, resistance is seen at 35,500/36,000,” mentioned De of LKP Securities.

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