Technical View: Nifty forms bullish candle; next target 13,700

Representative Image (Image: Pixabay)

The bulls once again took control of D-Street from the morning to push the Nifty above the critical 13,500 level to register a new high of 13,548. The S&P BSE Sensex, too, crossed 46,000 for the first time to hit 46,164.

The benchmarks ended the day closer to their new highs, suggesting that the momentum remained strong. The Nifty50, which opened above 13,400, hit 13,548 before closing the day at 13,529.10.

Experts say the bulls remain firmly in control and dips are getting bought. Investors are advised to stay long but can book partial profits. A close above 13,550 can push the index towards 13,700.

The bulls appeared to have entered a different orbit as the Nifty continued its journey into uncharted territory by conquering the 13,500 level on a closing basis.

“Certain momentum oscillators are presenting a different picture but price chart and momentum, at this point in time, is only favouring the bulls and trendline studies on longer time frame charts are only pointing towards a new target placed in the zone of 13,750 -791 levels,” Mazhar Mohammad, Chief Strategist–Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

“Hence, unless the Nifty trades below 13,449 levels in the next session, weakness shall not be expected, whereas intraday strength may remain even in the weekly expiry session if the bulls manage to sustain above 13,550 levels. In such a scenario, a target of 13,700 can’t be ruled out,” he said.

Mohammad added that considering the fact that the current index level is far from its short-term average price, traders are advised to remain cautious. They will be better off booking profits and maintaining a neutral stance.

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