nifty technical outlook: Tech View: A follow-up buying may ensure Nifty50 bulls are back

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Nifty50 on Thursday made strong gains and closed near the psychologically important mark of 17,800. After a gap-up start, the index ended up forming a small bullish candle with a long lower wick, suggesting intraday selling was bought into. Analysts said a follow-up buying may help gauge the strength of the upmove.

The 50-pack index appears to have registered a breakout from its minor consolidation zone of the last five sessions as it registered a close above the 17,770 level, with a gap up, said Mazhar Mohammad of Chartviewindia.in, adding that a follow-up is required in the next trading session as this rally can also be attributed to the weekly expiry factors.

Weakness, Mohammad said, shall not be expected unless Nifty50 closes below 17,650. Therefore, traders with high risk-taking ability can buy the dips for a target of 17,990, but the stop shall remain below the 17,650 level, he said.

For the day, the index closed at 17,799, up 174 points or 0.99 per cent.

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan said the index is approaching the upper end of the consolidation range of 17,200-18,000. “The index is likely to stumble as it approaches the 18,000 mark. The overall structure suggests that we are likely to see further consolidation before the index resumes the larger uptrend,” Ratnaparkhi said.

Nifty Bank
For the day, the index closed at 40,209, up 753 points or 1.91 per cent.

Kunal Shah, Senior Technical Analyst at said Nifty Bank surpassed the crucial hurdle of 40,000 on a closing basis, which clears the room for further upside on the index. The index momentum oscillators are in the strong buy zone, which confirms the internal strength, he said.

“The index is likely to test the level of 41,000-41,500 on the upside and the lower end support remains at the 39,000 level,” Shah added.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)

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