NEW DELHI: Nifty50 saw follow-up buying on Thursday and formed a bullish candle on the daily chart for the second session in a row. The NSE barometer made a higher high and low for the third straight session.
Nifty, however, failed to surpass the recent swing high 10,553 on a closing basis, even as Thursday marked the highest close for the index in 64 sessions. Analysts said the sentiment remains positive, but further buying is needed to instill confidence among traders.
“The index has been moving in a rising channel on the daily scale that connects the swing lows of 7,511, 9,004, 9,544, 9,845, 10,250 and 10,300 levels and supports are gradually shifting higher," said Chandan Taparia of Motilal Oswal Securities.
He said the index has to hold above 10,450 level to witness an up-move towards 10,650 level, while immediate support is seen at 10,333 and then 10,250 levels.
For the day, the index closed at 10,551, up 121 points or 1.17 per cent. During the session, Nifty witnessed selling pressure at 10,600 level, as suggested by the upper wick.
“The intraday trading range was quite narrow,” said Mazhar Mohammad of Chartviewindia.in.
"Unless the index sees a strong close next session, this rally may not sustain. Weakness will be confirmed on a close below 10,485 level. In that scenario, Nifty may once again slip into a sideways consolidation phase," he said.
“Nifty is now trading above the 200-day EMA (exponential moving average) at 10,513. The bullish gap area formed in Thursday's session in the 10,485-10,447 range will act as a short-term support zone,” said Rajesh Palviya of Axis Securities.
The RSI has turned northward after taking support at the 60-level, confirming the bullishness dominant at the moment, said Aditya Agarwala of YES Securities.
The underlying sentiment is bullish and the probability that Nifty50 will rise over the next couple of sessions is higher, said Manish Shah, Independent Technical Analyst.
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