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Tech view: Nifty forms bullish candle on weekly chart, key hurdle at 11,141

NEW DELHI: Nifty50 on Friday staged a smart rebound from its support at 10,950 to eventually form a bullish candle on the daily as well as weekly charts. The NSE barometer may need to take out its strong resistance at 11,141 to trigger a stronger rally.

The index is in the recovery mode and there are more legs to this rally on the upside, said Amit Shah, analyst with Indiabulls Ventures.

For the day, Nifty50 closed at 11,075, up 93.10 points, or 0.85 per cent. “Nifty is likely to test the 11,300-11,500 range. Traders should position themselves on the long side. We have been contrarian on the index since 10,750. We continue to maintain our bullish stance. Support for the index exists in the 10,870-10,750 range while resistance is placed till 11,150 level,” Shah said.

Mazhar Mohammad of said the recent corrective swing low of 10,637 still appears to be unfolding in the form of a contracting triangle on the charts, which could trigger a breakdown going forward.

“To negate its formation, Nifty50 needs a strong breakout above 11,141 level. On such a breakout, the possibility of 10,637 level holding on to its ground firmly remains much higher. Moreover, such a breakout will facilitate a decent pullback rally with higher targets placed around 11,450 level,” he said.

Mazhar advised traders to wait for a breakout above 11,141 level before initiating fresh long positions.

Source: Economic Times