New Delhi: Nifty 50 broke the 16,000 mark intraday for the second consecutive session on Wednesday, closing just below psychological levels. The index formed a bullish candle on the daily chart which almost took hold of the negative candle of the previous session.

Technically, according to Nagraj Shetty, this indicates a disregard for bearish formation and indicates a positive bias for the market. HDFC Securities,

“Short term trend of Nifty 50 has turned positive and the overall chart pattern indicates the possibility of a sharp upside breakout of the barrier. The next upside levels to be seen are around 16,200-16,300 in the near term. Immediate support is placed at 15,900 levels, ” They said.

For the day, the index ended up 178.95 points or 1.13 per cent at 15,989.80

Mazhar Mohamed of Chartviewindia said as long as the index remains above 15,800, it could be in a bright spot to bridge a bearish gap with the level above 16,172.

“In such a scenario, the rally may eventually move towards its 200-days EMA, which is priced at 16,550 level. However, in the middle, resistance from the downsloping trendline refuses to close around and above the 16,100 level. Cannot be done. Will further strengthen the confidence level of bulls. Meanwhile, on the downside, 15,800 will be considered as important short-term support,” he added.

Milan Vaishnav, Founder and Technical Analyst, Gemstone Equity Research, says that a major bullish candle indicates an upward trend.

“As we move into the weekly options expiration day, the 16,000 level is likely to act as an inflection point. The highest Call Open Interest is at the 16,000-strike. Any strong move above the 16,000 would push the index to the 50-DMA. which is currently at 16,139. ​​If Nifty 50 sustains below 16,000, it may enter a consolidation zone,” Vaishnav said.

Nifty Bank

Independent analyst Manish Shah said Bank Nifty saw a long bullish candle at daily levels, with the index closing at the day’s high. Shah said the index is trading below its declining trend line and needs to move above 34,480-35,000 to continue the rally.

“Nifty Bank is above its 20-day moving average and MACD is in a buy mode. A break above 34,480-35,000 would mean a rally to 36,100 odd levels, probably before the end of July. Support for the index at 33,850 It is seen. Shah said.

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