Nifty in Up­trend, Faces 8840 Hur­dle

The Economic Times - - Smart -

The mar­ket gained con­sid­er­ably post Bud­get and will con­tinue to re­main in an up­trend in the com­ing days. If the hur­dle of 8840 is crossed, the Nifty could move be­tween the 8900 and 9100 range. Go­ing ahead, the RBI pol­icy meet and as­sem­bly elec­tions are un­knowns that could sway the mar­ket in either di­rec­tion.

NAGARAJ SHETTI What is in store?:

Nifty wit­nessed an ex­cel­lent up­move in the last two weeks and moved into new swing high of around 8757 lev­els on Thurs­day.

Over the last 5-6 weeks, we ob­served for­ma­tion of more num­ber of long bull can­dles on the way up and rel­a­tively small bear can­dles dur­ing de­clines or mi­nor cor­rec­tions. One day weak­ness/down­ward re­ver­sals have not seen fol­lowthrough moves so far. This pat­tern is dis­play­ing an in­her­ent strength in the mar­ket and in­di­cates more up­side for near term.

As per weekly time­frame, a bull can­dle has been formed last week with long lower shadow, in­di­cat­ing an emer­gence of buy­ing in­ter­est from the lows. is now ad­vanc­ing to­wards the next im­por­tant

of down slop­ing trend line (con­nect­ing the top of 9119-March-15 with 8968–Sept 16) around lev­els.

What could in­vestor do?: The un­der­ly­ing trend for Nifty as per smaller and larger time­frame is up and some more up­side is likely for the next cou­ple of weeks. The

to be watched is around which could be achieved in the next 2 or 3 weeks.

Sec­torally,

are ex­pected to per­form in line with the in­dex. PUSHKARAJ KANITKAR

TECH­NI­CAL RE­SEARCH AN­A­LYST, HDFC SE­CU­RI­TIES GEPL CAP­I­TAL - AVP, TECH­NI­CAL RE­SEARCH

Where are we?: Af­ter hit­ting the lows around 6825 last year on the Bud­get day, the Nifty did move onto the high of 8925 in Septem­ber 2016. How­ever, it failed to cross onto the all-time highs of 9119 that it had cre­ated in March 2015. The fact that Nifty has al­ready crossed above the 61.8% re­trace­ment level of this re­cent down leg with quiet a pomp and sus­tained it on weekly ba­sis speaks of the strength of the mar­kets.

What is in store?: By the logic of higher tops & higher bot­toms, the mar­ket may climb onto

A grad­ual rise is what we ex­pect from here on, with in­ter­me­di­ate cor­rec­tive moves that may give an op­por­tu­nity to buy on dips. The are placed at fol­lowed by the pre­vi­ous swing high of 8925. On the flip side, this week’s low at and the 3-week low at be the lev­els to the

What could in­vestors do? We feel the mar­kets would con­tinue to re­main in a ra­tio­nal up­trend go­ing ahead, and it would be pru­dent to ride it. The strat­egy to would on

men­tioned above would give the tac­ti­cal edge. Also, it would be a good idea to buy on dips around the sup­ports, as & when the cor­rec­tions oc­cur.

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