“Such a pattern is usually seen around potential turning points, which is hinting at a balance of power between the bulls and the bears at the top,” stated Mazhar Mohammad of Chartviewindia.in.
“If Nifty50 trades below Monday’s bullish gap zone at 14,383-367 levels, it can trigger profit booking. If it closes below 14,367, the correction can be slightly higher towards 14,167. Meanwhile, if the bulls manage to push the index beyond 14,500, the upswing can expand towards 14,750 level,” Mohammad stated.
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Aditya Agarwala, Senior Technical Analyst at YES Securities, stated the index has closed past the channel resistance line, confirming the bullishness.
“A sustained commerce past the 14,450 stage will prolong the good points to 14,550 stage. Moreover, technical indicator RSI has turned larger from the 70vlevel, signalling bullishness . The fast assist is at 14,300, a breakdown from which might halt the uptrend, triggering corrections to 14,200-14,100 ranges,” Agarwala stated.
For the day, Nifty closed at 14,484, up 137.50 factors or 0.96 per cent.
Gaurav Ratnaparkhi, Senior Technical Analyst of Sharekhan, stated the crossing of the rising trendline on the day by day chart reveals the bulls are having an higher hand.
“The benchmark index is heading towards the short-term target of 14,600, beyond which the 15,000 level will be the next major target. On the downside, the 14,300-14,250 zone will act as a key support,” he stated.