Tech View: Nifty needs to take out September high to extend its 6-day rally
The index is now a stone’s throw away from the September high of 11,694.
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The NSE barometer closed at 11,661, up 75.50 points or 0.65 per cent. The weekly momentum indicator has entered the positive territory whereas the daily momentum indicator has started a new cycle on the upside from the equilibrium line.
“The index is now a stone’s throw away from the September high of 11,694. Once this high is taken out, Nifty can head towards 11,790, which is the 78.6 per cent retracement of the June-August decline,” said Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan.
The index appears to have registered a breakout of the down-sloping trendline, which is in progress from the high point at 12,103 hit on June 3.
“Nifty needs to get past the 11,700 level on a closing basis to march forward,” he said.
The 11,450 level is a key near-term support, said Amit Shah of Indiabulls Ventures, who thinks investors can utilise declines to build long positions.
Ratnaparkhi advised traders to ‘buy on dips’ and expects the index to face resistance in the 11,550-11,500 zone.