TO GET LIVE TRADING TIPS WHATSAPP ON 9039542248
The bulls roared back on Dalal Street as Nifty ended above 16250. Metal Pack, where the star performers shine as major benchmark indices surged amid positive signals from Asian and European stock markets amid prevailing inflation and stagflation fears. Markets staged a significant recovery rally as the recent slump had pushed key indices into oversold territory. Traders covered their short positions in several distressed stocks that pushed key benchmarks today. However, the rally may be short-lived as unabated FII selling combined with concerns about further rate hikes to tame inflation could fuel volatility. On the daily charts, Nifty has formed a long bullish candle that is broadly positive in the near term. Benchmark indices closed higher for the second straight session with Nifty closing above 16,250. To finish, the Sensex was up 1344 points, to 54318 and the Nifty was up 417 points, to 16259. The biggest positive catalyst was that China - the largest consumer of manufactured products - eased Covid-19-related restrictions. Optimism was so strong that the bulls shrugged off LIC's poor listing performance (8% drop to Rs. 873 from the issue price of Rs. 949). The next move could see Nifty's bulls likely to scale as high as 200 DMA from 17253. Support is seen for the index at 16000 and below that level, Nifty could quickly rally to the 15671 level. The Nifty has traded sideways for the past few sessions. It had formed a doji pattern on the daily chart on May 16, which was a sign of indecisiveness in the minds of market participants. In terms of price patterns, the hourly chart's Nifty had formed a triangle pattern. On May 17, the index broke out of this indecisive period to the upside. On the way up, the index breached the 16000 level as well as the major hourly moving averages, further bolstering the bulls. All of these observations suggest that the Nifty has turned its short-term trend positive. For the trend following traders 16150 would be the trend decision level above which the positive momentum is likely to continue to 16350-16425. On the upside, a quick intraday correction is possible if the index slides below 16125. Below that, the index could retest the 16050-16000 level.
Resistance: 16350, 16400, 16450
Support: 16250,
16200, 16150
No comments:
Post a Comment