Nifty Forms ‘Short Bull’ Can­dle, May Rise More

The Economic Times - - Money -

timesin­ter­net.in ETMar­kets.com: The Nifty50 took out the 8,800 level on Mon­day after five months of wait and, in the process, broke the range­bound move­ment to form a ‘Short Bull’ can­dle pat­tern on the daily chart, which sug­gests the in­dex could add more weight in the com­ing ses­sions.

If tech­ni­cal charts are any­thing to go by, the in­dex should see the next re­sis­tance around 8,860. The Nifty50 saw a gap-up open­ing and broke the 8,800 mark in trade for the first time since Oc­to­ber 2016, only to give up the gains soon after. The in­dex, though, man- aged to close above the psy­cho­log­i­cal mark and was up 60.10 points, or 0.69 per cent, at 8,801 at close. Mon­day marked the fourth day of con­sec­u­tive gains for the in­dex. An­a­lysts said Mon­day’s rise was just the con­tin­u­a­tion of the lift that the mar­ket got on the Bud­get day.

A ‘Short Bull’ can­dle is a sin­gle can­dle­stick pat­tern. If the can­dles are short, the trad­ing ac­tion could be muted, but the trend may con­tinue to be on the up­side. “Though we have seen ga­pup open­ings, there is noth­ing sig­nif­i­cant on the daily chart pat­tern. The on­go­ing move is just a fol­low-up of the up­ward move that we saw on the Bud­get day. In the past few ses­sions, we have been see­ing longer wicks, but the body re­mains small,” Sac­chi­tanand Ut­tekar, Tech­ni­cal An­a­lyst, Moti­lal Oswal Se­cu­ri­ties, t ol d ETMar­kets.com.

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