“Nifty50 formed an Inside Bar and a bullish candle on a daily scale with a long lower shadow that indicates that the declines are being bought into. The index continued to form higher lows for six sessions now, but negated the formation of higher highs of last 15 sessions. The index may need to hold above the 14,450 level to see a fresh move towards the 14,750 level,” said Chandan Taparia of Motilal Oswal Securities.
Taparia sees a major support at the 14,300 level.
For the day, the index closed at 14,595, up 30.75 points or 0.21 per cent. The index stayed within the range seen on January 13 and, thus, formed the Inside Bar on the daily chart.
“This makes the boundaries of January 13 i.e. 14,435 and 14,653, important support and resistance levels, respectively. Nifty can witness further consolidation in this range before going higher and once the swing high of 14,653 is taken out, the index will extend the gains. Overall, the short-term target continues to be at 15,000 level,” said Gaurav Ratnaparkhi at Sharekhan.
Check out the candlestick formations in the latest trading sessions
Aditya Agarwala of YES Securities said the index continues to trade beyond the upper end of the channel, confirming the intermediate bullishness at the moment. “A sustained trade above 14,600 level will extend the gains to the 14,670-14,800 zone. A trade below 14,400 level may halt the current bullishness, dragging the index lower to 14,350-14,300 levels,” he said.