Technical View | Nifty forms bullish candle, experts say may test 18,000 in coming days


The Nifty started the April series on a positive note, with the index comfortably closing above 17,600 and forming a bullish engulfing candle on the daily scale and a bullish candle on the weekly frame.

The Nifty50 seems to have resumed its up move as it registered a decent bullish candle on the weekly charts after a week of pause, said Mazhar Mohammad, Founder & Chief Market Strategist at Chartviewindia.

The indicator setup across time frames was slowly tilting in the favour of bulls again. “Hence, sustaining above 17442 levels an initial logical target of 17814 is looks inevitable in the next one or two trading sessions but there is a bright chance of testing 18k levels somewhere next week,” Mohammad said.

Positional traders can remain long with a stop below 17400 and look for a target in the 17,900–18,000 zone, he added.

The options data suggests an immediate trading range between 17,500 and 18,000.

Maximum Call OI is at 17,500 then 18,000 strike, while maximum Put OI is at 16,000 then 17,000 strike. Marginal Call writing is seen at 17,500 then 18,000 strike, while Put writing is seen at 17,000 strike.

India VIX was down by 10.34 percent from 20.53 to 18.43. It needs to sustain at lower zones for the market to stabilise.

Banking index

The Bank Nifty opened negative but ascended right from the initial tick and moved towards 37,200.

It outperformed the broader market and closed with a gain of around 770 points, forming a strong bullish candle on the daily scale.

“It has to hold above 37,000 zones for an up move towards 37,500 and 37,777 zones, whereas support can be seen at 36,750 and 36,500 zones,” said Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services.

Positive set up was seen in BHEL, NTPC, Canara Bank, Shriram Transport Finance, Can Fin Home, City Union Bank, ZEEL, Federal Bank, GAIL, Bandhan Bank, M&M Financial, BPCL, BOB, L&TFH, Power Grid, Tata Power, SBIN, HAL, HDFC, M&M, AU Bank, IOC, Bajaj Finance, Deepak Nitrite, NMDC, BEL, HDFC Bank and Cummins India. Weakness was seen in Alkem, Chola Financial, Mindtree, Divi’s Labs and Cipla.

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