Kshitij Anand Moneycontrol News
Bulls took charge of D-Street from the word go as Nifty50 made a fresh record high of 9,158.45 and closed above 9,100 level for the first time ever indicating a continuation of the bull run.
Investors should remain on the long side as Nifty50 made a strong bull candle on the daily candlestick charts. Investors can keep a strict stop loss below 9,075 on a closing basis for all long positions.
A bullish candle formed on the daily chart signifies that the market witnessed sustained buying interest from the bulls for the most part of the trading day which is a bullish sign. The Nifty50 opened at 9,129.65 and rose to a record high of 9,158.45. It dipped slightly to 9,128.55 before closing the day at 9,153.70.
The index witnessed a range breakout and now it has to continue to hold above 9,119 to extend its up move towards 9,200-9300 level. If the momentum sustains, Nifty50 will continue to register fresh highs in the coming week as well.
“The Nifty50 made a strong bull candle on the daily charts. It witnessed a range breakout and now it has to continue to hold above 9,119 to extend its up move towards 9,250,” Chandan Taparia, Derivatives and Technical Analyst at Motilal Oswal Securities told Moneycontrol.
“Overall, it has been making higher top – higher bottom formation and supports are shifting higher from 9,000 to 9,075 on an immediate basis. The market trend is intact to positive till it remains above psychological 9,000 zones,” he said.
Although, the intraday trading range is limited to mere 30 points but it looks like bulls appear to be solidifying their position after recent thumping gains.
Some of the technical indicators such as relative strength index (RSI) are suggesting that the index might be trading at overbought levels, but there is no need to panic till the time there is evidence of a reversal and as long as Nifty50 holds 9,119 level.
“Once this intraday trading ranges gets expanded then Nifty50 shall register a fresh breakout with a target of 9,350 levels,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
“Hence, traders should continue to remain on the long side, unless some signs of reversal on short term charts are visible, with a stop below 9075 on a closing basis,” he said.
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