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NEW DELHI: After resting the sub-10,400 level, the Nifty50 on Monday made a smart rebound from the day’s low point to end above the 10,500 level.
The index made a strong bullish candle on the daily chart which resembled a bullish Marubozu candle, with virtually no upper or lower wick.
Experts believe the decisive breach of short-term moving averages bodes well.
The index may consolidate with a positive bias and face strong resistance around the 10,580 and 10,600 levels, they said.
“The index formed a Bullish Marubozu Candle on the daily chart, which implies complete dominance by the bulls.
It has been making higher highs from last 11 sessions, implying continuation of the uptrend.
As long as it holds above 10,480, the index may extend its gains towards 10,580 and 10,630 levels.
Supports are seen at 10,480 and 10,440 levels,” said Chandan Taparia of Motilal Oswal Securities.
During the session, the index hit a low of 10,396, before making a strong rebound.
It eventually settled the day at 10,528, up 47.75 points, or 0.46 per cent.
“Chart patterns suggest if the Nifty50 trades above 10,540, it is likely to climb towards 10,580 and 10,610 levels.
The index is sustaining above its 20-, 50- and 100-day SMAs, which indicate bullish sentiments ahead,” said Rajesh Palviya, Head - Technical Derivatives Analyst, Axis Securities.
Mazhar Mohammad of Chartviewindia.in, though, warned that as Nifty50 heads higher, the real challenge for the bulls would be in breaking above the critical resistance placed around the 10,630 level.
“As the index registered eighth successive close in the positive terrain, some pause or consolidation can’t be ruled out in the next couple of sessions,” he said.
