Tech View: Nifty50 forms bullish candle; next stop at 8,750 level

NEW DELHI: Nifty on Thursday climbed for the third straight session. The index formed a bullish candle on the daily chart, and analysts now believe that the ongoing rally may extend beyond 8,750. The immediate support for the NSE barometer is seen at the 8,300 level, they said.

For the day, the index rose 323.60 points, or 3.89 per cent, to 8,641.45.

During the day, the index surpassed the 40-hour exponential moving average and the hourly upper Bollinger Band. The index made an intraday high of 8,749 and low of 8,304.90.

“The hourly chart shows that the index broke out from a falling channel. Thus, the bulls could stretch their arms till 8,750. The swing high of 8,883, however, remained invincible,” said Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan.

Mazhar Mohammad of Chartviewindia.in believes that a hold above the 8,749 level could push the index towards its 13-day EMA of 8,978, which had been offering support in upward phases.

“By the principle of polarity, the level can become a resistance for the index. Contrary to this, a close below 8,304 can kick in profit booking as Nifty is almost up by around 15 per cent in the last three days from the lows of 7,511,” he said.

On the weekly charts, while the index has formed a bullish candle, it is still forming lower-high lower low formation for the sixth week.