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Authors: Super UserNEW DELHI: The bulls were in driver’s seat on Dalal Street on Monday, and helped the Nifty50 zip past the 10,700 level.
In the process, the index formed a bullish candle on the daily chart.
If the index breaks above 10,780, a big rally could be in the offing, analysts said.
The index recouped losses seen in the previous two sessions.
The fast retracement indicate bullish sentiment, says Rajesh Palviya of Axis Securities, who believes any sustainable move above the key resistance at 10,730 will trigger further rally towards 107,80 and 10,800 levels.
For the day, the Nifty50 rose 97.25 points, or 0.92 per cent, to 10,715.
The index has been trading above its short-term averages, but is still not in the overbought zone as suggested by the relative strength index.
Nifty’s immediate support is around the 10,680 level, Palviya said.
The bulls appear to have made a strong comeback, as the Nifty50 registered a solid bullish candle after testing the critical support at 10,600 in Friday’s session.
This rally not only negated bearish formations registered last week but appears to have triggered a fresh leg of upswing.
Nifty50 can clear its immediate hurdle at 10,785 level and head towards its logical target of 10,928, said Mazhar Mohammad, Chief Strategist of Chartviewindia.in.
Nifty’s next resistance is seen at the previous swing high of 10,780.
“If that level is taken out, we may see further momentum till the 10,900 level,” said Mustafa Nadeem, CEO at Epic Research.
