INSUBCONTINENT EXCLUSIVE:
NEW DELHI: The Nifty50 jumped for the second session on Tuesday but failed to reclaim the 10,700 level in intraday trade
It negated the formation of lower highs and lower lows after four days of trading to form a small bullish candle on the daily chart
The market breadth improved though declines outnumbered advances
The minor correction the index witnessed last week looks done at the recent low of 10,489 and Nifty50 looks poised to take out the swing
high of 10,774 in order to go for the next leg up, said Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan
The bulls are not loosening their grip on the market, said Chandan Taparia of Motilal Oswal Securities
He said the index is headed towards the 10,750-10,770 zone and the downside support is at 10,580 level
For the day, Nifty rose 57 points, or 0.54 per cent, to 10,685
It hit the 10,695 mark in intraday trade and is sustaining above the 20-day and 50-day SMAs
Besides, both the RSI and momentum indicator Stochastic have turned bullish, which may support strength ahead, said Rajesh Palviya of Axis
In terms of the wave structure, Wave B seems to be over at 10,489 and Wave C of the pullback has started, Ratnaparkhi said
Once Nifty takes out the swing high of 10,774, it can march towards the 11,000-11,140 range
Traders are advised to position themselves on the long side and increase exposure once Nifty crosses the 10,774 level, he said
Nagaraj Shetti of HDFC Securities echoed the same view
Mazhar Mohammad of Chartviewindia.in said the 200-day moving average for the index is placed around the 10,774 mark
Arun Kumar of Reliance Securities said the overall market breadth and internals are yet to cross their thresholds to trigger a reversal
He said the index should face resistance in the 10,740-10,821 range.
