The market saw a relief rally of nearly 2 percent on Friday, taking support at 16,750, after consistent selling in previous seven consecutive sessions and looking oversold. This rally, on a weekly basis, helped the Nifty50 trim losses to little more than one percent, continuing downtrend for third straight week.
The index decisively gave a close above 17,000 mark as well as 200-day SMA (around 16,990). It has formed bullish Engulfing candlestick pattern on the daily charts and there was Hammer kind of pattern formation on the weekly scale at downtrend, indicating bullish reversal pattern.
Hence, if the index holds current levels and surpasses 17,200-17,300 in coming sessions, then 17,500 can be a possible target with crucial support at 17,000 followed by 16,800-16,750 levels, experts said.
"A move beyond 17,200 on a closing basis would strengthen the recovery rally. In this case, 17,350 – 17,500 levels cannot be ruled out. On the flipside, 16,900–16,750 has now become a sacrosanct support zone," Sameet Chavan, Chief Analyst-Technical and Derivatives at Angel One said.
The market expert advised traders to keep a close tab on global developments and any favourable cues on this front would provide the much-needed push to the domestic markets.
ACC: Buy | LTP: Rs 2,415.65 | Stop-Loss: Rs 2,313 | Target: Rs 2,785 | Return: 15 percent
After a higher level of reversal (i.e. from Rs 2,785 to Rs 2,313), the stock formed a bullish reversal pattern - Morning Doji Star around its extended horizontal breakout line and poised for a fresh up-move. This could take the stock towards its life-time-high in the short-term.
The key technical indicators tested the oversold zone on short-term timeframe chart and on the verge of a bullish cross-over. A follow-up move will confirm the bullish reversal and support probable rise in the stock.
stock exchange today
The index decisively gave a close above 17,000 mark as well as 200-day SMA (around 16,990). It has formed bullish Engulfing candlestick pattern on the daily charts and there was Hammer kind of pattern formation on the weekly scale at downtrend, indicating bullish reversal pattern.
Hence, if the index holds current levels and surpasses 17,200-17,300 in coming sessions, then 17,500 can be a possible target with crucial support at 17,000 followed by 16,800-16,750 levels, experts said.
"A move beyond 17,200 on a closing basis would strengthen the recovery rally. In this case, 17,350 – 17,500 levels cannot be ruled out. On the flipside, 16,900–16,750 has now become a sacrosanct support zone," Sameet Chavan, Chief Analyst-Technical and Derivatives at Angel One said.
The market expert advised traders to keep a close tab on global developments and any favourable cues on this front would provide the much-needed push to the domestic markets.
ACC: Buy | LTP: Rs 2,415.65 | Stop-Loss: Rs 2,313 | Target: Rs 2,785 | Return: 15 percent
After a higher level of reversal (i.e. from Rs 2,785 to Rs 2,313), the stock formed a bullish reversal pattern - Morning Doji Star around its extended horizontal breakout line and poised for a fresh up-move. This could take the stock towards its life-time-high in the short-term.
The key technical indicators tested the oversold zone on short-term timeframe chart and on the verge of a bullish cross-over. A follow-up move will confirm the bullish reversal and support probable rise in the stock.
stock exchange today
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