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Tech View: Bullish candles on daily, weekly charts signalling positive bias

Nifty shall ideally head towards its lifetime high placed at around 12,158, says Mazhar.

Last Updated: Dec 13, 2019, 05.35 PM IST|Original: Dec 13, 2019, 05.35 PM IST
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Nifty is just 72 points away from its lifetime high.
NEW DELHI: NSE Nifty extended rally for the third straight session with yet another gapup opening on Friday. Before closing nearly 115 points up at 12,087, the index touched an intraday high and low of 12,099 and 12,024, respectively. The index kicked off the day at 12,026 against its previous close of 11,972.

Nifty made bullish candles on daily and weekly charts and formed higher highs and higher lows for the second session on Friday.

According to market experts, the last three sessions of upmove is hinting at the completion of corrective swing from recent low of the 11,832 level.

“Oscillator setup on lower time frame charts is turning bullish. Nifty shall ideally head towards its lifetime high placed at around 12,158. However, considering the fact that index has erased four sessions of losses in just two days, some breather for the bulls can be expected in the next session,” said Mazhar Mohammad, Chief Strategist-Technical Research & Trading Advisory at ChartviewIndia.

The index is just 72 points away from its lifetime high and a small followup could lead the fresh leg of rally.

Chandan Taparia, Technical & Derivative Analyst, MOFSL said: “Nifty has to continue to hold above 12,035 to extend momentum towards the 12,250-12,300 zone, while on the downside, support exists at 12,000 and then 11,950.”

Shrikant Chouhan, Senior Vice-President, Equity Technical Research, Kotak Securities said, “The market has confidently crossed the 12,080 level, which is positive for the market, and the strategy should be to trade long on dips between 12,000 and 11,950. On the downside, 11,900 would be the ultimate support. Above 12,100, Nifty would face hurdles at 12,160 and 12,250.”

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