Tech View: Nifty’s bullish candle suggests bulls are in full control

Tech View: Nifty's bullish candle suggests bulls are in full control

NEW DELHI: Nifty50 climbed for the third straight day on Tuesday, as the bulls continued to make a comeback after every intraday dip. The index formed a small bullish candle on the daily chart and closed a whisker away from its immediate resistance of 14,200.

Analysts said the index has been trading in the overbought zone, but the momentum has remained strong and the supports are shifting higher. They recommended buy on dips.

“The overall structure shows the positive momentum can continue going ahead and Nifty looks headed towards the 14,600 mark in the short term. On the other hand, the 14,000-13,950 zone can act as a cushion on the downside,” said Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan.

At close, Nifty stood at 14,199, up 66.60 points or 0.47 per cent.

“If Nifty crosses and sustains above 14,300 level, it would witness buying towards the 14,400-14,500 zone. But if the index breaks below 14,100 level, it would trigger selling and take Nifty to the 14,000-13,900 zone. Nifty is trading above its 20-day SMA, which indicates a positive bias in the short term. Buying on dips continues to be our preferred strategy,” said Rajesh Palviya of Axis Securities.
Independent analyst Manish Shah said the index is showing a strong buying interest at lows, and the tendency is such that the reversals are rather sharp.

Check out the candlestick formations in the latest trading sessions

“This is a sign of the bulls being in firm control of the market. The 14,350-14,360 zone could be a barrier to the rising Nifty. A barrier means only a barrier, which can easily be surpassed. But there could be a pause in the trend,” he said.

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