INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Nifty50 on Friday breached a strong hurdle at the 10,784 level on a closing basis to reclaim the 10,800-mark -- a day ahead of
the polls in Karnataka -- suggesting the bulls are in the driving seat.
While the outcome of Karnataka elections will have a bearing on the
market in the short term, from purely technical basis, charts suggests strength.
"The index formed a bullish candle on daily and weekly
scale by surpassing immediate hurdle at 10,785 zones
It has given a decisive close above 10,800 after a consolidation of last 10 trading sessions
It continued the formation of higher highs-higher lows for a seventh consecutive week, which indicates that bulls are holding the tight grip
Supports are gradually shifting higher," said Chandan Taparia of Motilal Oswal Securities
The index needs to hold above 10,785 zones to extend its move towards 10,888 and 10,950 levels, Taparia said, adding that supports for the
index at 10,725 and 10,680 levels.
For the day, the index rose 89.95 points, or 0.84 per cent, to close at 10,806.50.
"The market appears to
be defying gravity as it registered a strong bullish candle both on daily as well as weekly charts, thereby negating the bearish technical
However, Friday's rally was seen on the back of weak advance-decline ratio
Besides, the rally appears to have driven mainly by financials and metals, which should be a cause of concern.
A buy signal on weekly MACD
charts though suggests that medium term uptrend may be strengthening further," said Mazhar Mohammad of Chartviewindia.in
From risk
management perspective, short term traders will be better off by remaining neutral and they are advised to book profits and sit aside in
next trading session till the event is out of the way, Mohammad said.
