Tech View: Nifty50 forms small bullish candle, eyes 14,000 level

Tech View: Nifty50 forms small bullish candle, eyes 14,000 level

NEW DELHI: Nifty50 rose for the fourth straight session on Monday. The index formed a small bullish candle on the daily chart and continued to form higher highs and lows for the third session in a row. The index can now attempt to take out the 14,000 level in the short term, said analysts, who believe holding above the 13,750 level is key for further upside.

“The index needs to hold above the 13,750-13,777 range to see a fresh rally towards a new lifetime high of 14,000. On the downside, major support exists at 13,700 and 13,600 levels,” said Chandan Taparia of Motilal Oswal Securities.

For the day, the index closed at 13,873, up 123.95 points or 0.9 per cent.

Shrikant Chouhan of Kotak Securities said the recent resistance of 13,750 level would serve as a major support for the market. He said the index on Monday respected the initial gaps and closed without filling it.

“Buy Nifty if it corrects to 13,750-13,700 levels; keep a stop loss at 13,600,” he said.

Aditya Agarwala, Senior Technical Analyst at YES Securities, expects a sustained trade beyond 13,860 to extend the gains to 13,950-14,000 range, but believes a move below 13,800 level may halt the ongoing uptrend.

Check out the candlestick formations in the latest trading sessions

“If that happens, Nifty may move towatds the 13,770-13,650 range. Moreover, Nifty is approaching the upper end of the rising channel placed at 14,000 level, which could act as a major hurdle going forward,” Agarwala said.

Independent analyst Manish Shah said the index has moved above the previous swing high and the pattern of higher highs and lows has continued. “Nifty has also moved above last Monday’s long red candle as the market negated the bearishness of the previous week. It is now hitting the top end of the channel. If the channel breaks and Nifty moves above it, the rally would continue,” it said.

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