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Tech View: Nifty forms small bullish candle as it heads towards 12,300 level

NEW DELHI: Nifty50 gained for the third straight session on Thursday and topped the 12,250 mark for the first time ever. In the process, the index formed a small bullish candle on the daily chart.

With this, the index formed higher high and low for the sixth successive session, suggesting that support has shifted higher. A rise towards the 12,300-350 range looks possible now, analysts said.

For the day, Nifty rose 38.05 points, or 0.31 per cent, to 12,259.

“The index is headed towards the upper end of the channel pattern placed at 12,370-12,380. On the downside, immediate support exists in the 12,200-12,180 zone. Its failure to sustain above the 12,230 level can lead to minor profit booking and take it to 12,200-12,180 zone. That can be used as an opportunity to create fresh longs, as the undertone of the market remains buoyant,” said Aditya Agarwala of YES Securities.

Amit Shah of Indiabulls Ventures expects Nifty50 to rise to the 12,400-12,450 zone, but sees resistance in the 12,300-12,400 range. “The immediate support for Nifty is placed at 12,150 and traders should be positioned on the long side,” he said.

“Nifty is headed north along with the daily upper Bollinger Band, which itself is in an expansion mode. It is on course to meet the short-term target at 12,350. On any minor dip prior before reaching this target is likely to make Nifty find support near the 12,200-12,150 zone,” said Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan.

The recent vertical move has triggered a ‘buy’ signal on the daily MACD chart, pushing the index to close above the upper Bollinger Band, said Mazhar Mohammad of

“Usually this kind of behaviour on technical indicators accompanied by overbought readings on several other technical parameters on the lower time frame charts hint at the need for some corrective or consolidation phase. For the time being, resistance for Nifty50 is visible in the 12,290-350 range,” he said.

Source: Economic Times