Tech View: Nifty forms a small bullish candle; 16,000 level likely to be revisited

nifty 50 Tuesday ended with a slight rise and formed a minor bullish candle on the daily chart. Analysts say that the positive trend of the bandh after the start of the fall was positive. They see that the index is testing the 16,000 level in the coming days. He added that the support for the index remains at 15,700.

Gaurav Ratnaparkhi, Head of Technical Research at Sharekhan said that during the day, selling pressure was absorbed near the key hourly moving averages.

The index saw a brief consolidation throughout the day near 15,700-15,800 and ended the session with an upward jump. The hourly chart shows that Nifty 50 is moving in an upward sloping channel and the upper channel The line may test the close of 16,000. On the downside, 15,700-15,600 will act as an important support zone, which will provide a cushion to the downside,” Ratnaparkhi said.

The index for the day closed at 15,850.20, up 18.15 points or 0.11 per cent.

“For the coming session, 15,750-15,700 remains a strong support zone, and the buy-on-decline strategy should continue until we break below it. On the flipside, 15,925-16,000 is considered one goes.

Wall. As of now, there is no sign of the market crossing 16,000 but the moment we do, we are likely to see a strong short-covering rally in the market,” said Sameet Chavan, Chief Analyst-Technical & Derivatives Angel One.

Meanwhile, Mazhar Mohammad of chartviewindia.in said derivatives data suggest that if Nifty 50 can keep its head above 15,750-15,800, it will move towards 16,000. “It is also worth noting that maximum Call Open Interest has been created in the 16,000 level; the index is likely to hold resistance at this point. While the market inches higher and stays above 15,800, it will also try to fill the gap which 15,800-16,200 point range,” said Mohammad.

Nifty Bank

Independent Analyst Manish Shah said that Nifty Bank is holding on to the support of 32,500, which is a sign of relief for the bulls.

“MACD went into a buy mode. Bank Nifty has had a major rally as a result of several MACD buy signals in the past. MACD also shows a positive divergence. Sentiment in the form of a series of green candles for Bank Nifty over the past few days A clear turnaround is shown in. suggesting that buyers are winning the daily battle.

Shah said that Nifty Bank is exiting an inverted head and shoulders pattern, which is a bullish trend reversal pattern on the lower time frame.

Everything is falling for a rally of 34,800-34,900. 33,200 support to Nifty Bank, he said.

(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. They do not represent the views of The Economic Times)