“The index has broken out of the two-month consolidation zone and such reductions in volatility are usually followed by strong gains. The 61.8% Fibonacci forecast level from the start of Nifty's rise since October is 23,200. This break If the outs continue, we expect a rapid march towards 23,000.Currently, the demand zone has shifted upwards to 22,200-22,250, which is expected to support the Nifty,” said Rupeezy Director & said Shirshyam Gupta, Senior Technical Analyst.
The stock market will open tomorrow in a special trading session from 9:15 a.m. to 10 a.m., then again from 11:30 a.m. to 12:30 p.m.
What should traders do? Here's what analysts are saying
Jatin Gedia, Sharekan
On the daily chart, we can see that Nifty has broken out of the running triangle pattern, indicating the beginning of a new uptrend. The daily Bollinger Bands are starting to widen and the price is trading along the upper band, indicating that there could be a sharp uptrend move. Nifty expects him to target 23,000-23,100 levels in the short term. On the downside, the 21,900 – 21,860 zone will act as an important support zone, below which a break will lead to a trend reversal.
Tejas Shah, Technology Research, JM Financial & BlinkX
Nifty has closed above the key resistance zone of 22,250-300 levels on a weekly close basis and the rally is likely to continue as long as Nifty remains above the 22,000 mark and the next resistance zone of 22,450- We think we might try 500. On an immediate basis, eventually he will be able to test 22,700 on the higher side of the Nifty.
Rupak De, LKP Securities
Nifty crossed 22,000 in early hours and drove the market higher throughout the day. A solid breakout in the index, coupled with a sustained move above the moving average, fueled a strong rally. In particular, the relative strength index (RSI) confirms a bullish crossover and indicates positive momentum in the market. Sentiment is optimistic about the potential upside, with buy-in expected. On the scale above, it is clear that resistance is at 22,400/22,600, while support is at 22,200.
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