After being in a consolidation phase for several sessions, the benchmark Nifty50 gave a positive breakout on Wednesday by crossing the key resistance level of 18,700 points and even closing comfortably above it.
The 50-stock index ended 0.7% higher at 18726.40 points.
A long bull candle was formed on the daily charts with a gap-up opening. This indicates an attempt to an upside breakout of minor range movement, says Nagaraj Shetti, technical analyst, HDFC Securities.
“The Nifty is all set to move into all-time highs (above the high of 18,887) in the short term and that could possibly open sharp upside momentum for the market ahead,” Shetti added.
Immediate support in Nifty50 to be watched is at the 18,650 level, and the immediate resistance is around the 18,900 levels for the short term.
Rupak De, senior technical analyst, LKP Securities:
The Nifty has recently experienced a positive breakout from a sideways pattern, seen as a favorable development. This breakout comes just before the Reserve Bank of India (RBI) announces its rate decision tomorrow.
Market participants are anticipating a dovish stance from the RBI governor, contributing to positive sentiment in the market.
Technically, support for the Nifty is positioned at 18,650, while resistance is expected around the range of 18880-18900.
Rahul Ghose, Founder & CEO, Hedged
The Nifty index on Wednesday saw huge put writing at the 18600 and the 18700 level for this week's expiry along with put writing even at the 18800 put leg for the June monthly expiry.
The 18800 PE is an in-the-money options leg. This is a very bullish sign and the current candle closing of today also signifies momentum on the upside.
The all-time high levels on the Nifty have a very high probability of breaking in the June series itself. The near-term bottom for the index has now shifted to 18400 from the earlier band of 18000-18200.
Jatin Gedia, technical analyst, Sharekhan by BNP Paribas
On the daily charts, we can observe that the Nifty has closed above the previous swing high (18662), which indicates that it has started the next leg of the up move.
It has the potential to target levels of 18,800 and thereafter an all-time high of 18,889.
The daily momentum indicator also triggered a positive crossover, a buy signal. In terms of levels, 18620-18580 shall act as the crucial support zone, while the hurdle zone is placed at 18800-18889.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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