After a slow start, markets rebounded sharply on renewed optimism as investors bought shares in the recently battered IT and oil & gas stocks. In fact, Indian stocks outperformed other Asian peers, most of which ended in negative territory. At the time of Market close the indices ended the session on June 2 on a positive note, with the Sensex gaining 436 points to 55818 and the Nifty gaining 105 points to 16628. Reliance rose over 3% to close at a 1-month high, lifting Nifty by 68 points.
Technically, after a muted open Nifty
remained volatile throughout the session with a positive bias. The
Nifty took support near 16445 and reversed the trend. A promising reversal
formation on intraday charts and a long bullish candle on daily charts indicate
further upside from the current levels. On the daily chart, the benchmark index
Nifty has formed an enveloping pattern indicating bullishness. The daily RSI is
in a bullish crossover and rising. At the top end, the index has resistance at
16650; above 16650 the Nifty can move towards 16700-16800. Trend is likely to
remain positive as long as it lasts above 16450. For day traders, 16525 would
serve as a trend decision level, above which the Nifty could rally to 16750.
Any further uptrend could see the index rally as high as 16800. On the
downside, the uptrend below 16450 would be vulnerable and could stall towards
16400.
Resistance: 16650, 16725, 16800
Support: 16550, 16450, 16350
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