Tech View: Nifty forms short bull candle on expiry day; eyes fresh high in Apr series

As long as Nifty trades above 9,133-9,119, the index is on track to hit fresh record highs above 9,218 in April series, suggest experts.

“The Nifty formed a bullish candle and registered a highest daily close. It has been making higher highs – higher lows from last three trading sessions and just 0.50 per cent away from its lifetime high of 9,218,” Chandan Taparia, Derivatives and Technical Analyst at Motilal Oswal Securities told Moneycontrol.

“The index has been holding above its support trendline by connecting the lows of 8,713, 8,903 and 9,024 levels. Till it holds above 9,133 zone, it has potential to head towards its lifetime high of 9,218 and then towards 9,280 while on the downside multiple supports are seen at 9,119 and 9,075,” he said.

The Nifty registered three positive closes in a row, but its price behaviour is not convincing enough as bulls appear to be dragging their feet despite strong support and new highs registered by Bank Nifty.

The structure remains intact but the momentum might be slowing down. If we look at the last three candles – Spinning top, short bull candle, and bearish belt hold pattern do not fuel confidence. But, as long as Nifty50 hold above key support levels there is nothing to worry about.

“The rally seen in the last six trading sessions can be presumed to be part of the corrective structure in progress from the lows 9,019 which can be defined as Inverted Flat in Elliot wave parlance,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

“If it is true then Nifty50 instead of heading northwards it should visit south and retest the lows of 9,019 levels. Unless Nifty50 comes out of its sluggish behaviour and clocks at least 1% intraday move traders should give priority to preserve their profits rather than playing the markets long for eternity,” he said.