“Nifty has been forming higher lows since last seven sessions. Now it has to hold above the 13,850 level to witness a fresh rally towards 14,200 level. Major supports stand at 13,777 and 13,700 levels,” said Chandan Taparia of Motilal Oswal Securities.
For the day, Nifty closed at 14,018, up 36.75 points or 0.26 per cent.
Aditya Agarwala, Senior Technical Analyst at YES Securities, said Nifty is approaching the upper end of the rising channel placed in the 14,140-14,150 range following a series of higher closing. The real bodies, he said, have shrunk forming ‘Doji’ candles, indicating a pause.
“The failure to break out of the channel can trigger profit booking, dragging Nifty towards the 13,800-13,750 zone. A sustained trade beyond 14,150 level can extend the gains to 14,300 level,” Agarwala said.
Check out the candlestick formations in the latest trading sessions
Shrikant Chouhan of Kotak Securities said the index has formed a breakout continuation formation and the texture of the chart suggests that the uptrend is likely to continue in the near term. “We can expect further upside towards the 14,300 and 14,400 levels. On the downside, Nifty would find support in the 13,800-13,700 zone,” he said.