Technical View: Nifty extends gains; may continue upmove towards 22,562

Market Today

Market ended higher for the second consecutive session on April 22 with Nifty 50 index rising nearly 1 percent amid positive global cues led by little ease in the tensions in Middle East.

The index started the session above 22,300 and remained in the positive territory throughout the session and made a high of 22,375.65 during the day.

Nifty closed 189.40 points, or 0.86 percent, higher at 22,336.40, from the previous close and formed a Dragonfly DOJI candlestick pattern.

"The Nifty opened the gap up and consolidated for the most of the day. The late surge helped Nifty to close with handsome gains for the second consecutive day. On the daily charts, we can observe that the Nifty has witnessed follow-through buying interest and has also managed to close above the 20- and 40-day moving averages placed in the range 22315 – 22198 which shall act as a support in the case of a dip," said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.

"On the upside we expect Nifty to continue its upmove towards 22562 which is the 78.6% Fibonacci retracement level of the fall from 22,776 to 21,777," he added.

The Nifty Bank index opened above 48,000 and touched intraday high of 48,146.30. However, it closed 0.74 percent higher at 47,924.90.

"Bank Nifty inched higher, securing a gain of 0.74%, and ended the session at 47,924.90. The rally was supported by both the private and PSU banking stocks, indicating sustained momentum," said Om Mehra, Technical Analyst, SAMCO Securities

"Indicators such as RSI and MACD in the daily chart signal a positive stance. The immediate support remains at 47,500 levels while resistance is placed at 48,500," said Om Mehra, Technical Analyst, SAMCO Securities.