Nifty kisses 20,000 level. Can bulls extend 7-day winning run?
Nifty hit a record high of 20,008.15, before closing the day at 19,996.35, up 176.40 points or 0.89 per cent. With this, the NSE barometer has climbed from 19,000 to 20,000 in 52 trading sessions.
- Sep 11, 2023,
- Updated Sep 11, 2023 5:39 PM IST
Nifty on Monday settled higher for the seventh consecutive session. While the index kissed the psychological mark of 20,000 during intraday trade, it fell short of the level, on a closing basis, by a whisker. The index formed a large bullish candle on the daily chart after a gap-up start, giving no signs of the bulls getting exhausted. The 14-day Relative Strength index, however, traded at 67 level. A RSI value above 70 hints at overbought situation. Analysts are positive for now.
The impressive rally followed a breakout from a descending channel that occurred last week, said Rupak De, Senior Technical analyst at LKP Securities. "Looking ahead, the market sentiment is expected to remain upbeat as long as the Nifty stays above the 19,900 level. On the upside, we can identify an immediate resistance zone between 20,100 and 20,200. If there is a convincing breakthrough above 20,200, it could pave the way for the Nifty to advance towards the 20,500 mark," De said. Nifty hit a record high of 20,008.15, before closing the day at 19,996.35, up 176.40 points or 0.89 per cent. With this, the NSE barometer has climbed from 19,000 to 20,000 in 52 trading sessions.
It rallied from 19,223 to 20,008 in eight trading sessions, said Chandan Taparia of Motilal Oswal Securities. The analyst noted that the index formed a strong bullish candle on the daily frame and has been forming higher highs for the last seven sessions. He believes the index need to stay above 19,950 for an up move towards 20,100 and 20,250 levels, respectively. Index supports exist at 19,900 and 19,850 levels, he said.
Jatin Gedia, Technical Research Analyst at Sharekhan said the ascend has been steep and swift, indicating the bulls have an upper hand in the ongoing rally. The correction witnessed during August has been overcome within seven trading sessions of September, Gedia said adding that momentum indicators on the daily and hourly time frames are in sync with the price action.
"Thus, we can expect the positive momentum to continue. On the upside, we expect Nifty to target 21,000 from a short-term perspective. In terms of levels, 19,865–19,810 is the crucial support zone while 20,200-20,250 shall act as an immediate hurdle zone," Gedia said.
Shrikant Chouhan of Kotak Securities said the trend is largely positive. For the trend following traders, 19,935 could act as a key support level, above which the index could move up till 20,100-20,175, he said.
"On the flip side, below 19,935, traders may prefer to exit longs and we could see a one quick intraday correction till 19,850-19,825,” Chouhan said.
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Nifty on Monday settled higher for the seventh consecutive session. While the index kissed the psychological mark of 20,000 during intraday trade, it fell short of the level, on a closing basis, by a whisker. The index formed a large bullish candle on the daily chart after a gap-up start, giving no signs of the bulls getting exhausted. The 14-day Relative Strength index, however, traded at 67 level. A RSI value above 70 hints at overbought situation. Analysts are positive for now.
The impressive rally followed a breakout from a descending channel that occurred last week, said Rupak De, Senior Technical analyst at LKP Securities. "Looking ahead, the market sentiment is expected to remain upbeat as long as the Nifty stays above the 19,900 level. On the upside, we can identify an immediate resistance zone between 20,100 and 20,200. If there is a convincing breakthrough above 20,200, it could pave the way for the Nifty to advance towards the 20,500 mark," De said. Nifty hit a record high of 20,008.15, before closing the day at 19,996.35, up 176.40 points or 0.89 per cent. With this, the NSE barometer has climbed from 19,000 to 20,000 in 52 trading sessions.
It rallied from 19,223 to 20,008 in eight trading sessions, said Chandan Taparia of Motilal Oswal Securities. The analyst noted that the index formed a strong bullish candle on the daily frame and has been forming higher highs for the last seven sessions. He believes the index need to stay above 19,950 for an up move towards 20,100 and 20,250 levels, respectively. Index supports exist at 19,900 and 19,850 levels, he said.
Jatin Gedia, Technical Research Analyst at Sharekhan said the ascend has been steep and swift, indicating the bulls have an upper hand in the ongoing rally. The correction witnessed during August has been overcome within seven trading sessions of September, Gedia said adding that momentum indicators on the daily and hourly time frames are in sync with the price action.
"Thus, we can expect the positive momentum to continue. On the upside, we expect Nifty to target 21,000 from a short-term perspective. In terms of levels, 19,865–19,810 is the crucial support zone while 20,200-20,250 shall act as an immediate hurdle zone," Gedia said.
Shrikant Chouhan of Kotak Securities said the trend is largely positive. For the trend following traders, 19,935 could act as a key support level, above which the index could move up till 20,100-20,175, he said.
"On the flip side, below 19,935, traders may prefer to exit longs and we could see a one quick intraday correction till 19,850-19,825,” Chouhan said.
Disclaimer: Recommendations provided in this article and/ or any reports attached or relied on herein are authored by an external party. The views expressed herein are those of the respective authors/ entities, and do not represent the views of Business Today (BT). BT does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. BT further urges you to consult your financial adviser and seek independent advice regarding the contents herein, including stock investments, mutual funds, general market risks etc.