scorecardresearchTechnical View: Nifty ends a percent higher; needs to sustain above 17,450 for uptrend to continue

Technical View: Nifty ends a percent higher; needs to sustain above 17,450 for uptrend to continue

Updated: 30 Mar 2022, 05:34 PM IST
TL;DR.

  • Vijay Dhanotiya, Lead of Technical Research at CapitalVia Global Research said sustaining above 17,400 will be an important level for the market to stay positive in the short term.

Nifty closed 173 points, or 1 percent, higher at 17,498.25.

Nifty closed 173 points, or 1 percent, higher at 17,498.25.

Positive global cues helped market benchmark Nifty in the green for the third consecutive session on March 30.

The index opened at 17,468.15 against the previous close of 17,325.30 and touched intraday high and low of 17,522.50 and 17,387.20, respectively.

After a gap-up opening, the benchmark witnessed some profit booking initially, however, healthy buying heavyweights across sectors brought back the momentum. Eventually, the index closed 173 points, or 1 percent, higher at 17,498.25.

"The news of possible de-escalation between Russia-Ukraine and easing in crude oil boosted investors’ sentiments. On the domestic front, the scheduled monthly expiry will keep volatility high so traders should plan accordingly. Amid all, participants should not go overboard and maintain a positive yet cautious stance," said Ajit Mishra, VP - Research, Religare Broking.

On the technical front, Mazhar Mohammad, Founder & Chief Market Strategist, Chartviewindia.in, pointed out despite the Nifty50 witnessing decent gains by clearing the immediate hurdle of 17,450, it depicted a weak indecisive candle. Hence, in the expiry session tomorrow, it looks crucial for the index to sustain above 17,387 to retain bullish bias.

"On the expiry day, if Nifty manages to sustain above 17,450 for more than one hour then it may prompt a short-covering rally. In that scenario eventually, a bigger target of 17,900 cannot be ruled out in the next couple of sessions," said Mohammad.

"However, a close below today’s bullish gap zone of 17,387– 17,343 shall once again encourage bears. For the time being, if someone is long, then they are advised to hold a stop loss below 17,387 and look for an initial target of 17,800."

Vijay Dhanotiya, Lead of Technical Research at CapitalVia Global Research said sustaining above 17,400 will be an important level for the market to stay positive in the short term. If the market sustains above the support levels, it may stay positive till the level of 17,600. Momentum indicators like RSI and MACD are indicating positive side momentum in the market.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.

 

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First Published: 30 Mar 2022, 05:34 PM IST