Nifty formation of a bullish candle indicates that the closing was higher than the opening level.
Nifty formed a bullish candle on the daily chart and has been forming higher highs - higher lows since the last two sessions.
Nifty opened higher at 14493 and extended gains to hit the day's high of 14667 in late trade. Nifty settled at 14653, up 168 points.
Nifty had a strong run-up for the second consecutive session and closed above the crucial resistance level of 14600 despite consistent FII selling, forming a bullish candle on the daily chart. Banking & financials and metals continued to be the leaders.
Markets extended yesterday’s gain and ended higher over a percent. Benchmark opened flat amid mixed global cues however it gradually inched higher as the day progressed citing investors’ expectations from earnings outcome by heavyweights.
Healthy buying across sectors led by banking, metals and specialty-chemicals is leading the rally. Stocks are up in anticipation of good quarterly earnings and improved outlook due to a hike in stock prices & demand. Mid & Small caps are outperforming the main benchmark. This is though FIIs continue to be net sellers in the domestic market, due to weak Asian markets ahead FED meeting, it was more than compensated by DIIs & Retail investors.
Sectors such as banking, metals, consumer durable witnessed healthy buying interest from participants. In addition, the progress of the vaccination drive and a dip in the COVID cases further boosted sentiments.
Bulls appear to be slowly strengthening their grip on the markets as the Nifty conquered the near term resistance with a close above its 20day exponential moving average whose value is placed around 14578 level. Hence, as long as it sustains above 14484 level, it can slowly head to test its 50day simple moving average whose value is placed around 14800 level.
In between, however, there is a bearish gap zone of 14652/14785 registered on (12th April 2021), but as Nifty heads into monthly expiry, short-covering rally can't be ruled out in the next two sessions, provided the index trades above 14600 in the next session.
If the index closes below 14484 in the next session, the tide can turn in the favour of bears, paving the way for a rangebound move between 14600 and 14200.
Traders should refrain from shorting but long side trade can be considered on a slight dip towards 14590 for a modest target of 14820 level.
All the sectoral indices ended in the green, while Midcap and Smallcap indices rose 1 percent each.