If the Nifty clears 50-day EMA, then 19,600 is on the cards.
The Nifty50 has seen a gap-up opening and a strong close for the third consecutive session, indicating that bulls are consistently tightening their control over Dalal Street. As the index cleared the crucial hurdle of 19,250-19,300 and closed above 21- and 100-day EMAs (exponential moving average), all eyes are on the 50-day EMA. If the index gives a decisive close above the 50-day EMA (19,450) and holds, then 19,550-19,600 is the level (around the high of the big red candle formed on October 23) to watch on the higher side, with immediate support at 19,300 mark, experts said.
The Nifty50 opened higher by more than 100 points at 19,346 and remained higher throughout the session. The index hit an intraday high of 19,423 in late trade, before closing 181 points higher at 19,415, and formed a bullish candlestick pattern with minor upper & lower shadows on the daily charts.
"It is anticipated that the trend will continue to move sideways in the near term. A decisive breakthrough above 19,450 points could potentially pave the way for a Nifty rally," Rupak De, senior technical analyst at LKP Securities said.
On the lower end, the support is situated at 19,300 points, he added.
The weekly Options data also suggested that 19,500-19,600 can be the next crucial resistance area for the Nifty, with support at 19,300.
Also read: Gainers and Losers: 10 stocks that moved the most on November 6
On the Options data front, 19,500-19,600-19,400 strikes owned the maximum Call open interest, with meaningful Call writing at 19,600 strike, then 19,500 & 20,000 strike, while the maximum Put open interest was visible at 19,300 strike, followed by 19,400 & 19,200 strikes, with Put writing at 19,300 & 19,400 strikes.
Bank Nifty
The Bank Nifty also traded higher for the entire session as the index opened with 300 points gains at 43,628 and traded within around 200 points range before closing at 43,619, up 301 points.
The index continued forming a Doji candlestick pattern on the daily charts for the fourth straight session, but making higher highs and higher lows. The index closed above the 21-day EMA (43,500) and now 44,000 is the crucial resistance for the index, with support at the 200-day EMA (43,240), experts said.
"The Bank Nifty has broken out of a falling channel, indicating a trend reversal from down to up. Daily momentum indicator has a positive crossover which is a buy signal,” Jatin Gedia, technical research analyst at Sharekhan by BNP Paribas said.
Both price and momentum indicators suggest that the positive momentum is likely to continue till 44,000 on the upside, he feels.
The broader markets too remained strong on positive breadth. The Nifty Midcap 100 and Smallcap 100 indices gained 0.9 percent and 1.4 percent respectively, while about two shares advanced for every declining share on the NSE.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Technical View | Bulls stay strong; 19,600 likely if Nifty50 clears 50-DEMA hurdle - Moneycontrol
Read More
No comments:
Post a Comment