Analysts said the 14,200 level, which was acting as a key hurdle until now, will be the immediate support for the index, which seems to have set sights on the 14,500-14,600 zone now. Below that, the 13,950 level may continue to offer strong support to the index, they said.
“Nifty50 now seems to be heading towards the 14,500 level in the absence of any significant negative event. On the downside, a strong support is seen at the 13,950 level and a break of the same may trigger profit booking in the short term. The market continues be in the overbought zone in the short term and we maintain a cautiously bullish outlook,” said Nirali Shah, Senior Research Analyst at Samco Securities.
Check out the candlestick formations in the latest trading sessions
Gaurav Ratnaparkhi of Sharekhan said Nifty continued to form higher tops and bottoms on the daily chart, which is a bullish sign. “Short-term as well as medium-term momentum indicators are in bullish mode and suggest further upside potential. The short-term target for the index is pegged at 14,600,” he said.
For the day, Nifty soared 209 points, or 1.48 per cent, to 14,347.
“In the process, the market continued to show strength for the 10th week, without any meaningful correction, from the lows of 11,557 level, which makes the index vulnerable to a sudden and sharp fall,” warned Mazhar Mohammad of Chartviewindia.in.
“At this juncture, it looks prudent for traders to trail and shift stop losses from time to time to the lows of the previous session. In case Nifty sustains above the 14,221 level on Monday, it can head towards the 14,500 level. In case it breaches the 14,221 level, some weakness may occur and can initially drag Nifty towards the 14,000 mark. Traders with high risk appetite are advised to go long by making use of intraday dips towards 14,250 level with a stop loss below 14,200 level, and look for a modest target in the 14,450-500 range,” Mohammad said.