From The Economic Times · ET Bureau · · 1m 20s
Nifty Rally Faces Crucial Test
Nifty gains 3% as analysts predict recovery but must clear key resistance levels for further strength.
In brief
Nifty gains 3% as analysts predict recovery but must clear key resistance levels for further strength. Nifty has gained 3% last week, forming a higher-top structure and reclaiming its 20-day average, with analysts cautioning it must clear resistance levels at 23,400, 23,500 for sustained recovery. Originally reported…
Nifty Gains 3% Last Week
Nifty gained 3% last week, boosting sentiment and raising hopes of a recovery.
Higher-Top Structure Formed
Nifty has formed a higher-top, higher-bottom structure, reclaimed its 20-day average and sustained above 23,000.
Bullish Technical Indicators
A Morning Star pattern, rising RSI and support at 22,786 keep the outlook bullish.
Next Upside Zone
23,400, 23,500 as the next upside zone for Nifty.
Bank Nifty Approaches Resistance
Bank Nifty is approaching the 56,000, 56,100 band, which previously acted as support and is now expected to pose resistance.
Bank Nifty Strategy
Sell on rallies towards 56,100, 56,200 with stop loss at 56,600 and targets at 55,500, 55,400.
Top Stocks for the Week
Coforge: Buy | CMP: Rs 1,951 | Target: Rs 2,070 | Stop loss: Rs 1,890.
Nifty Strategy for Recovery
Buy on dips towards 22,800 with targets at 23,475, 23,600.
The bottom line
Nifty has gained 3% last week, forming a higher-top structure and reclaiming its 20-day average, with analysts cautioning it must clear resistance levels at 23,400, 23,500 for sustained recovery.
