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NEW DELHI: Nifty50 on Wednesday broke above the crucial 11,625-11,845 range where it was stuck for the past eight sessions.
In the process, the index formed a small bullish candle on the daily chart.
During the session, the index faced resistance at the 11,870 level, which will be its next immediate resistance.
If there are no F-O expiry-related jitters on Thursday, traders can focus on the long side of trade and look for an initial target of 12,000, said Mazhar Mohammad of Chartviewindia.in.
The bullish momentum may get negated if the index slips below 11,757 level, he said.
A sustained trade above 11,870 should extend gains to the 11,960-12,040 range, said Aditya Agarwala of YES Securities.
“However, a failure to sustained above the consolidation breakout i.e.
11,850-11,870 will trigger profit booking, dragging Nifty lower to 11,765-11,700 levels.
The RSI has turned higher to form a higher low above the 40-mark, favouring the bulls,” Agarwala said.
For the day, the index rose 51.10 points, or 0.43 per cent, to 11,847.
It surpassed its falling supply trend line by connecting the swing high of 12,103, 12,000, 11,843 and 11,814 levels, said Chandan Taparia of Motilal Oswal Securities.
“The index managed to close above the 50-day EMA.
It needs to hold above 11,761 to extend this move towards 11,929 and 12,000 level.
Downside support is seen at 11,761 level,” Taparia said.
