Nifty forms another strong bullish candle
The RSI decisively above 70 zone registered a crystal clear breakout, and if it can test near 80 zone, Nifty will test 19,035 and 19,200 levels
image for illustrative purpose
The Nifty closed at another record high with the last 30 minutes' sudden surge. NSE Nifty ended with 140.35 points gain, or 0.75 per cent, and settled at 18,758.35. The Nifty Metal, Energy, and Realty indices gained over 1.5 per cent. The FMCG and Infra indices gained by over one per cent. Only the PSU Bank index is down by 1.35 per cent. All other indices were up by less than a per cent. The Market breadth is positive as 1,183 advances and 719 declines. The Advance-Decline ratio is improved to 1.73. About 67 stocks hit a new 52-week high, and 89 stocks traded in the upper circuit. VBL, Indian Hotels, and TI India were the top trading counters on Wednesday in terms of value.
The day started on a flat note and slowly moved higher. The last 30 minutes of over 139 points sharp surge has erased all the indecisiveness at the top. It formed another strong bullish candle at the end of the day. The Nifty has rallied 680 points in the last seven trading sessions. The index is in uncharted territory, and there is no visible resistance. The RSI decisively above the 70 zone registered a crystal clear breakout, and it can test near the 80 zone. If expectations are met, the Nifty will test 19,035 and 19,200 levels as soon as possible. Unlike yesterday, the last hour of trading is completely different on Wednesday.
On Tuesday, it witnessed a profit booking in the last hour. But on Wednesday, it reversed with the sharpest possible move. The 20DMA support moved further higher level to 18,319. Now the prior bar low of 18,616 will be the immediate support. There is no weakness in any time frame. A dip also leads to aggressive buying. The momentum has suddenly picked up. With the last hour jump, the volume and the breadth are also improved. As the weekly expiry is approaching, the volatility may increase. The Nifty may test 18,865 and may face mild profit booking again. No clues are available on the reversal from here. Be with the trend.
(The author is Chief Mentor, Indus School of Technical Analysis, Financial Journalist, Technical Analyst, Trainer and Family Fund Manager)
