Nifty on Thursday surpassed the immediate resistance of 19,650 levels to close 116 points higher and formed a long bull candle on the daily chart.
The overall chart pattern is indicating a larger upside breakout of a broader consolidation/triangle pattern of the last 5 weeks and this is opening a potential upside target for Nifty around 20,000-20,200 levels over the next couple of weeks, said Nagaraj Shetti of HDFC Securities.
The daily and the hourly Bollinger bands have begun to expand and prices are trading along the upper band indicating that the momentum is likely to continue. Both price and momentum indicators suggest that there is further upside over the next few trading sessions, analysts said.
What should traders do? Here’s what analysts said:
Shrikant Chouhan, Head of Research (Retail), Kotak Securities
Nifty successfully cleared the short-term resistance of 19,650 and post breakout it intensified the positive momentum. Higher bottom formation on intraday charts and bullish candle on daily charts support further uptrend from the current levels. We are of the view that 19,650 would be the key level to watch out for, and above the same the index could move up to 19,800-19,825. On the flip side, below 19,650, the uptrend would be vulnerable.
Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas
Bank Nifty has broken out of a three-day consolidation on the upside which indicates that it has started the next leg of up-move. Daily and hourly momentum indicators are in sync with the price action which should provide speed to the present up-move. On the upside 45,000 is the psychological hurdle and above that 45,200 shall be the next possible hurdle. Overall, the trend is positive, and any intraday dips should be bought into.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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