Gaurav Ratnaparkhi of Sharekhan said the index recently took support near the lower end of a sideways channel.
“Over there, it had formed a Piercing Line – a bullish candlestick pattern. Last session, the index had formed an Inside Bar on the daily chart, which broke out on the upside on Tuesday. The overall structure shows the index is moving from the lower end of the consolidation range towards the upper end, which is near the 15,000 mark. On the other hand, the 14,707 level will act as a crucial near-term support,” he said.
For the day, Nifty closed at 14,814 level, up 78.35 points or 0.53 per cent. It has closed comfortably above its 50-day SMA, whose value is placed around 14,770 level, said Mazhar Mohammad of Chartviewindia.in.
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“Sustaining above the 14,707 level would be critical for the bulls to show some strength in the near term. In that scenario, the rally may extend up to 14,959 level, which is the 62 per cent retracement of the last leg of the fall from the highs of 15,336-14,350. Nevertheless, choppy trade can be expected to continue as the larger trend remains sideways and traders should remain cautious ahead of the penultimate day to the monthly F&O expiry,” he said.
Nifty closed Tuesday’s session marginally higher and ended above the rising 50-period moving average. This could be the sign that the market is finally firming up. On the lower timeframe, intraday chart patterns seem to be reversing and the market may be poised to move higher.
Independent analyst Manish Shah said the Bullish Piercing Pattern that Nifty50 made on Friday is getting confirmed.
“The support in the 14,550-14,500 zone seems to be holding up as of now. Nifty is trading below the 20-period average and once the resistance at 14,880 is cleared, it should see a rally towards the 15,000-15,100 range. We have the monthly expiry in two days, which could be a very tepid one. For traders interested in trading expiry the support at 14,710-14,700 is important. Chances of a rally towards 15,000 level are higher. So plan accordingly,” Shah said.