Sumeet Bagadia, Executive Director, Choice Broking, said, technically, the Nifty index traded below the falling trendline as well as the upper band of Bollinger formation on the daily chart, which acts as an immediate resistance for the counter. However, the Nifty has given closing above 50 DMA and Ichimoku Cloud formation, which points out bullish strength in the index. At present, the Nifty index is holding support at 14,700 levels while an upside resistance seems at 15,000 levels, he said.
Technically, on intraday charts the market has formed lower top kind of formation, but at the same time the Nifty took the support near 50-day SMA which is broadly positive for the market, said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities. “We are of the view that post-strong uptrend rally, bulls may prefer to take a temporary pause near 14,950/ 49,500 and because of weak global market conditions market are likely to consolidate between 14,750 to 14,900/ 48,500-49,300 price range. For the day traders, 14,900/49,300 would be the key level to watch out. Above the same we can expect continuation of uptrend wave up to 14,965-15,000/ 49,800-50,000. On the flip side, trading below 14,800/ 48,990 could trigger one more leg of correction till 14,750/ 48,500,” Chouhan added.
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