Stock Market Analysis: Tech View: Bullish Engulfing Candle on Monthly Charts Shows Better Sentiment

New Delhi: Nifty 50 climbed for the third consecutive day on Friday and reached the level of 17,100 on a closed basis. During the day, the index resumed its 200-day simple moving average with a gap in the day before and showed strength.

The index formed a bullish candle on the daily scale. On the weekly scale, it formed a solid bullish candle with a long lower lower, which suggests buying at the lower.

Mazhar Mohamed of chartviewindia.in said Friday’s gap-up opening paved the way for a strong close above the 200-day SMA, which is near the 17,025 level.

Mohamed said that the index started the month with a bullish engulfing formation on the monthly chart, indicating a correction in sentiment.

“If the index holds above 17,018, it may move up to 17,550 where several resistance points have been placed. However, some consolidation could be seen from the low of 16,438 in just three trading sessions to the high of 17,170. . or profit booking,” said Mohd.

For the day, the index closed 228.65 points or 1.35 per cent higher at 17,158.25.

Gaurav Ratnaparkhi at Sharekhan said the index found support near the gap zone last week.

“On that as the week progressed, there was a sharp jump in the index. And today, it crossed 17,000. In terms of technical parameters, it is above the April-June fall and the 61.8 percent retracement of the 200 DMA. Thus, the index may continue higher as long as it remains above 17,000. On higher levels, it may test 17300 in the near term,” Ratnaparkhi said.

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nifty bank

Kunal Shah, Senior Technical Analyst

Said Nifty Bank index remains in buy-on-dip mode with immediate support at 36,800 level.

“Upside resistance is at 38,000 where highest open interest has been created on the call side,” he said, adding that once it is broken, another rally towards the 38,500-39,000 range is likely.

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

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