“The current Nifty50 rally from the low of 16,162 stage to a excessive of 16,589 has dragged sure momentum oscillators into the overbought zone. Some warning is warranted on the a part of the bulls, though there are not any obvious promote indicators on the decrease time-frame charts,” mentioned Mazhar Mohammad of Chartviewindia.in.
Mohammad mentioned a fall under the 16,480 stage might end in a sideways development for Nifty50 with a damaging bias. He suggested merchants to e book revenue if the index slips under the identical. For the day, Nifty closed the day at 16,563, up 33.95 factors or 0.21 per cent.
Gaurav Ratnaparkhi of Sharekhan mentioned an hourly momentum indicator is displaying weak point. “It has turned its trajectory down from the overbought zone. Thus, the index can step right into a minor consolidation, earlier than heading increased. The consolidation can happen close to 16,450-16,600 vary submit which the Nifty50 can head in the direction of 16,800 within the brief time period,” he mentioned.
Rohit Singre of LKP Securities mentioned merchants ought to use any dip to make recent longs close to 16,500-16,440. He suggested merchants to not make recent longs, as risk-reward doesn’t look beneficial. This analyst sees resistance for the index within the 16,600-16,500 vary.
Shrikant Chouhan of Kotak Securities mentioned that the index has fashioned a breakout continuation formation for the day. The feel of the chart, he mentioned, means that the 16,450-16,400 vary would act as key assist for the day merchants.