Nifty Analysis: Tech View: Nifty eyes record high levels; analysts advise buying into any intraday dips

NEW DELHI: Nifty50 on Wednesday took out its immediate resistance of 15,300 level. Analysts said a sustained rise above the 15,335 level could push the 50-pack index towards record-high levels. Any intraday dip should be bought into, they said.

At close, the index stood at 15,301.45, up 93 points or 0.61 per cent.

Support levels are shifting higher, said Ruchit Jain of Angel Broking, who sees immediate support for the index at 15,235 and 15,163 levels. This analyst has advised traders to continue with a positive bias and look for buying opportunities on intraday declines.

Aditya Agarwala of YES Securities said that the index can test levels of 15,400-15,450 levels on a sustained trade beyond the 15,335 level.

“On a shorter time frame chart, the RSI has started forming negative divergences, which indicate that the uptrend is losing momentum. A failure to sustain beyond 15,335 may trigger profit booking to levels of 15,200-15,150,” he said.

For the day, the index formed a small bullish candle on the daily chart. The index also made higher highs and lows for the fourth straight day.

“The index is adhering to the daily upper Bollinger Band, but the angle of ascent has decreased in the last two-three sessions. The hourly momentum indicator is showing negative divergence. Thus, the index can take a minor degree dip, before heading higher,” said Gaurav Ratnaparkhi of Sharekhan. The index can plunge towards a rising trendline on the hourly chart, which is near 15,200. Over there, one can initiate fresh long positions. Overall, the Nifty is set to test the all-time high of 15,431,” he said.

Check out the candlestick formations in the latest trading sessions

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Mazhar Mohammad of Chartviewindia.in said that while new highs look inevitable, the bulls appear to be developing discomfort as they are inching upwards, which is revealed in the pattern formations of the past three trading sessions. That includes Wednesday’s Hanging Man candle, he said.

“Such indecisive formations are getting registered around the near-term resistance of 15,336 and that too when some of the momentum oscillators on lower time frame charts are approaching overbought zones. Unless the Nifty50 clears the 15,335-hurdle, the trend shall continue to remain dicey. Whereas weakness can be expected if the Nifty50 registers a close below the 15,190 level. Considering monthly expiry on Thursday, traders are advised to remain neutral,” Mohammad said.