Bulls led the charge on D-Street as the Nifty closed above its two crucial resistance level i.e. 9600 and 9,650 in one trading session on Monday. The index closed above its crucial short-term moving averages and made a bullish candle on the daily candlestick charts.
However, bulls failed to keep the momentum going and pared gains slightly to close the day at 9,657, up 69 points. At a time when most market experts were anticipating consolidation to happen, Nifty50 gave a big surprise on the first trading session of the week.
The big move could also be a result of short covering which propped the index towards 9,700. This was evident from the advance-decline ratio which sits at 99 issues advancing compared with 112 declining.
"We said ‘technically now 9518 is a possibility if 9560 gives in and the breakout level is 9620’. The Nifty did not touch the 9560 mark but instead gave a breakout at our point of 9620 and closed in the green," said Technical Analyst, Prakash Gaba.
"Technically now the next logical technical target would be 9724 as long as 9620 holds."
"The crucial support for the Nifty is at 9620 and the resistance is at 9700-9724," he added.
Bank Nifty has support at 23530 and resistance at 24000.
Bullish plays for today's trade:
Dalmia Bharat | Momentum Pull | Target Rs 2625, stoploss Rs 2450
Hindustan Zinc | Base Formation | Target Rs 252, stoploss Rs 242
Mahanagar Gas | Base Formation | Target Rs 1010, stoploss Rs 970
Reliance Capital | Indicator Buy | Target Rs 625, stoploss Rs 606
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