Nifty Forms ‘Short Bull’ Candle, May Rise More
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.