Nifty on Friday formed a bullish candle on the daily scale. On the weekly scale, the index took out its previous swing high and formed a bullish candle with an upper wick, suggesting selling at a higher level. Analysts said the index may continue to consolidate as long as it does not take out the 18,200 level. The levels of 18,000 and 17,800 would act as key supports, they said. ┬а┬а
The 50-pack index settled at 18,117.15 on Friday, up ┬а64.45 points or 0.36 per cent. For the week, the NSE barometer gained 1.86 per cent or 330 points.
Nagaraj Shetti of HDFC Securities said the reasonable positive candle on the daily chart and indicated an attempt of up-move post consolidation movement in the market. “The positive chart patterns like a smaller degree higher top-bottom are intact on the daily chart and Thursday’s low of 17,959 could now be considered as a new higher bottom of the sequence,” Shetti said.
Shetti said the long bull candle on the weekly chart was placed at the edge of a decisive upside breakout of the crucial resistance around 18,100 level, a previous top. “This is a positive indication and one may expect further upside in the near term,” he said.
Gaurav Ratnaparkhi of Sharekhan said Nifty continued to hover around 18,000-18,100 for another session on Friday. He said the 18,200 is a key Nifty barrier for the short term.
“Unless that gets taken out, the index is likely to have a short-term consolidation. On the downside, a breach of the level of 18,000 will turn the structure in favour of the bears. In that case, the Nifty can test 17,800 on the downside. Overall, 17,800-18,200 will be the short-term consolidation range,” he said.
Rupak De, Senior Technical Analyst at LKP Securities said the positive momentum continues, as the index has closed above the previous swing high. Besides, the index has maintained its position above 200-DMA and the momentum indicator RSI showed a bullish crossover. The short term remains bullish, with an upside potential of 18,300-18,600. On the lower end, the support is pegged at 17,950, he said.
