Equity barometer Nifty50 closed over a percent higher on March 14 with banking and IT heavyweights as top contributors.
The index opened almost flat but built on gains gradually and closed with a healthy gain of 241 points or 1.45 percent at 16,871.30 with 37 stocks in the green and 13 stocks in the red.
After a long time, the Nifty succeed to close above 20-day simple moving average (SMA). It has formed abullish candle on the daily chart, Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, pointed out.
"We are of the view that as long as Nifty trading above 16,700, the uptrend will continue in the near future. For the bulls, the immediate hurdle would be 17,000 or 200-day SMA. On the downside, below 16,700, the strong possibility of quick intraday correction on the Nifty is not ruled out. Below 16,700, Nifty could retest 16,620 and 16,550," said Chouhan.
Nifty50 registered a fresh breakout above its 37-day old descending channel signalling a sustainable up move going forward. Moreover, it registered a close above 20-day simple moving average which curtailed all the pullback attempts since the January 2022 top of 18,350 level," Mazhar Mohammad, Founder & Chief Market Strategist, Chartviewindia.in, pointed out.
"There is a bright chance, that the 200-day simple moving average, present around 16,970 levels, may not pose a bigger challenge for bulls. Therefore, as long as Nifty sustains above 16,600 level, one can look for much bigger targets with an initial move into the zone of 17,500 – 17,700 levels. Hence, any dip for positional traders can be a buying opportunity with a stop below 16,600 levels," said Mohammad.
Rupak De, Senior Technical Analyst at LKP Securities, observed that Nifty has given breakout from a falling channel on the daily timeframe suggesting a rise of bullishness. In addition, the benchmark index has moved above the previous swing high which is again a bullish set-up.
"The trend may remain positive as long as it sustains above the said channel. On the lower end, support is visible at 16,650 whereas on the higher end resistance is pegged at 17,000," said De.