Tech View: Bullish dash after a Hammer give bulls an upper hand

NEW DELHI: Nifty50 on Monday saw a strong rebound from the 15,500 level. It ended up forming a long bullish candle on the daily chart, following a 'Hammer' on Friday, giving the bulls an edge.

Analysts said the index can now make an attempt to revisit the recent high of 15,900, on a move above 15,761. On the downside, they continue to see key Nifty50 support at 15,450.

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan, said the bulls have managed to defend the support of 15,450, which now becomes even more crucial support.

"The index is headed towards the upper end of the short-term range, which is at 15,900. As the overall outlook is positive, buy on dips will continue to be our preferred strategy from short term trading perspective," Ratnaparkhi said.

For the day, the index closed at 15,746, up 63.15 points or 0.4 per cent.


Mazhar Mohammad of Chartviewindia.in said technical indicators are turning mixed as the weekly MACD chart has generated a 'buy' signal, giving an edge to the bulls.

"Nifty50 recouped almost all the losses witnessed on Friday, strengthening the chances of registering a near-term bottom around 15,450 level. This will be further confirmed if Nifty50 registers a sustainable close above 15,761 levels, which should ideally pave the way for a test of recent corrective swing highs placed around 15,900 levels. But Nifty50 shall continue to trade inside the trading range of 310 points witnessed on Friday," he said.

Check out the candlestick formations in the latest trading sessions

Independent analyst Manish Shah said technical oscillators are showing signs of reversal. "Moving averages continue to show rising slope. Though MACD is bearish; within the context of the trend, it seems to be a corrective decline. Simple price action now points out at Nifty50 rallying towards 15,900 before the expiry," Shah said.