NEW DELHI: The Nifty50 hit an all-time closing high on Friday and made a bullish candle on the daily chart.
This also marked the fourth week of consecutive bullish pattern for the index on the weekly scale.
At one point, the index was just 9 points away from its all-time high level of 11,495, but it came off later in the day to settle at a fresh closing high of 11,470, up 85.70 points, or 0.75 per cent.The positive sequential movements of higher tops and bottoms have came into play and the index is in the process of forming a new higher top of the sequence, said Nagaraj Shetti of HDFC Securities.
For that the index needs move above the 11,495 level.Overall, the daily RSI has turned up from near the 60 mark, which is signalling the possibility of another negative divergence pattern ahead.On the weekly timeframe chart, the Nifty50 has witnessed smart lower levels from intra-week dips.
The underlying trend of Nifty is positive, and one may expect further rise by next week.
The upside range to be watched will be 11,550-600, while the immediate support is placed at 11,350 level," Shetti said.Mazhar Mohammad of Chartviewindia.in noted that the intra-week dip towards the 11,340 level got bought into as market participants considered it as an opportunity.After Fridays recovery, the trade setup is once again favouring the bulls.
If it sustains above the 11,430 level, the Nifty50 would once again create history with new highs by clearing the recent top of 11,495.
In such a scenario, the next resistance on the medium term chart will come around 11,630 level, he said.A fall below the 11,400 level may give the bears enough chance to make a comeback, the expert said.