NEW DELHI: The Nifty50 on Monday formed a small bullish candle on daily chart.
The index managed to hit highe st level in four weeks in intraday trade, despite weakening market breadth.Market breadth needs to improve, so does performance of trailing Nifty Bank, for any sustained up move.For day, headline index rose 54.90 points, or 0.50 per cent, to 10961.85.Nifty has broken above its trading range, which augurs well for uptrend to continue, said Subash Gangadharan of HDFC Securities.
Once immediate resistance of 10,988 is taken out, our next upside target for index will be at 11,036-11,081.
The 10,885 level will offer support, Gangadharan said.Sameet Chavan of Angel Broking said recent underperformance from banks needs to be reversed and that Nifty Bank index will play a vital role, if Nifty has to stay higher.
Besides, a majority of Nifty50 constituents needs to perform aswell.Mondays session was quite encouraging.
The index managed to surpass last four weeks high, which was acting as a sturdy wall of late.
However, market breadth remained weak throughout day, which was quite surprising to us.
Reliance Industries single-handedly contributed 80 per cent to Nifty gains.
Hence, going ahead, other constituents should also participate in order to have a healthy rally, said Sameet Chavan of Angel broking.
Gaurav Ratnaparkhi of Sharekhan believes that index can head towards 11,000-11,070 in order to complete last leg of Ending Diagonal pattern.The broader market indices, however, are diverging from benchmark index since last few sessions.
Once last leg of pullback gets over, Nifty is also likely to follow suit and can see lower levels, he said.So far, daily strength indicator RSI and momentum indicator Stochastic both are in bullish mode, which supports upside bias, said Rajesh Palviya of Axis Securities.Short term traders are advised to trial their stop loss level to below 10,880 kind levels on a closing basis, said Mazhar Mohammad, Chief Strategist Technical Research Trading Advisory, Chartviewindia.in.