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Tech View: Nifty50 forms a large bullish candle; next stop 11,900

Nifty formed a bullish candle on the daily chart, as it continued to form higher highs & lows.

, ET Bureau|
Updated: Oct 29, 2019, 05.07 PM IST
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NEW DELHI: Nifty50 saw a steep rally on Tuesday and took out its near-term resistance at 11,700 to zip past the 11,800 level in intraday trade, before settling below that mark.

The index formed a large bullish candle on the daily chart, as it continued to form higher highs and lows, suggesting that supports are shifting higher.

“After crossing 11,700, the intraday rally happened within no time and Nifty hastened towards the next psychological junction at 11,800," said Sameet Chavan of Angel Broking.

For the day, the index ended 159.70 points, or 1.37 per cent, higher at 11,786.

Chavan said Tuesday’s rally saw broadbased participation and hence it should be considered a robust one. “We remain sanguine about Nifty’s next stop at 11,900 first and then a march towards 12,000. In the case of any dip towards 11,750 – 11,700 zone, it would be a good buying opportunity," he said.

A breach above the 11,700 mark along with a Bullish Flag breakout on the daily chart suggests the current bullish momentum can extend further towards the 12,000 mark in the near term, said Rohit Singre, Senior Technical Analyst at LKP Securities.

“If Nifty manages to consistently trade above 11,800 level on closing basis, then the decks will be cleared for it to retest the recent lifetime high at 12,103. But there can be a strong resistance around 11,981. It's a buy-on-dips market. Any correction into the 11,740 - 720 zone can be an opportunity to create fresh longs," said Mazhar Mohammad of Chartviewindia.in.

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