Tech View: Nifty forms small bullish candle; confirms dominance by bulls
A sustained trade above 11,950 can take the index higher to 12,060-12,120 levels.
The index has managed to close beyond a trendline resistance, confirming the bull dominance, said Aditya Agarwala of YES Securities.
“A sustained trade above 11,950 can take the index higher to 12,060-12,120 levels. On the flip side, a trade below 11,850 may trigger profit booking. The RSI on the daily time frame suggests that bullishness in intact and the rally has more legs on the upside,” he said.
For the day, the index rose 80.65 points, or 0.68 per cent to 11,924. This is the highest ever daily close for the index. It is just about 110 points away from its lifetime high of 12,041 level.
Sameet Chavan of Angel Broking feels it would merely be a formality now. “The 12,000-12,041 zone is seen as immediate hurdle, whereas on the lower side, the 11,859 and 11,812 levels may offer support on an intraday basis,” he said.
In terms of the Fibonacci retracement, the bounceback in the index has turned out to be a deep one.
“It reached the 78.6 per cent retracement mark on Monday and formed a small distribution over there. Hence, the upside looks limited from current level. On the other hand, the risk-reward ratio is pretty attractive at this level to initiate a short position,” said Gaurav Ratnaparkhi of Sharekhan.
The 12,041 level may act as a crucial resistance on a closing basis.