The bulls continued to rejoiceon Dalal Street for the sixth straight session on Tuesday. The 50-share Niftypared all initial losses in the last hour of trade to settle 20.35 points, or0.19 per cent, higher at 10,908.
After a gap-down opening following subduedglobal cues, the index scaled an intraday low and high of 10,819 and 10,915,respectively. During the process, the index formed a bullish candle on thedaily chart as the near-term indicators remained in ‘buy’ mode.
ArunKumar, Market Strategist, Reliance Securities, said Nifty closed on a positivenote on the back of falling crude prices and an appreciating rupee. “Thenear-term measures continue in buy mode. The index could rise towards 10,950and 11,100 levels over the next few trading days,” he said.
Mazhar Mohammad, Chief Strategist – TechnicalResearch & Trading Advisory, Chartviewindia, said: “The initial dip intoMonday’s bullish gap zone between 10,844 and 10,815 levels got bought into bythe market participants. However, as the current rally enters the sixth sessionwith consecutive positive closes, it has reached overbought levels, and hence,it may not stretch further on the upside beyond a point without a pause. Hence,this can be the right opportunity for the bulls to take profits in the nextsession if Nifty50 opens around the 10,950 level.”
India VIX remained flattish and closed with again of 0.46 per cent at 14.60. The overall volatility fell sharply from higherlevels in last six sessions with a surge in Put-Call Ratio, which suggestsbulls’ grip on the market.
For Wednesday’s session, Milan
Vaishnav, Technical Analyst, Gemstone Equity Research and Advisory, said there
are chances that Nifty may extend gains at least in early hours of trade.
Even a small extension ofNifty’s upward move will take it to a pattern resistance from a minor doubletop and also its 100-DMA at 10,938. They remain in close proximity of eachother. If we get any extension of the upward move, one should use these moves toprotect profit at higher levels. Shorts should be avoided, as the structure ofthe markets remains buoyant,” Vaishnav said.