“The decent bullish candle is suggesting that a fresh leg of upswing may be unfolding from the recent lows of 17,450 level,” said Mazhar Mohammad of Chartviewindia.in.
“If the index sustains above the 17,640 level on Wednesday, the bulls can attempt to test the recent lifetime high present at the 17,947 level. On such a close, a higher target towards the 18,200 level can be expected. A close below the 17,640 level can trigger a fall towards the 17,550 level,” Mohammad said.
For the day, Nifty closed at 17,822.30, up 131.05 points or 0.74 per cent.
Nifty50 formed a bullish candle after the previous session’s Morning Star formation, which confirms the bullishness in the market, said independent analyst Manish Shah.
“The underlying trend remains sharply up as the directional movement index is showing signs of bullishness. ADX continues to show strength as it continues to show reading above 40. One can expect the Nifty50 to hit the 18,000-18,150 zone over the next couple of days. Support for the index is seem at 17,550-17,500,” Shah said.
Gaurav Ratnaparkhi, Head of Technical Research at Sharekhan, said the index has crossed the 61.8 per cent retracement of last week’s decline and reached near the 78.6 per cent retracement mark i.e. 17,840.
“That is an immediate resistance to watch out for. Overall structure shows that the Nifty50 is still in a short term consolidation phase and is heading towards the upper end of the range i.e. the 17,950 level where it is likely to witness selling pressure. On the downside, the 17,700-17,640 zone will act as a near-term support,” he said.