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The Nifty ended higher for the fourth consecutive session on February 16, helped by gains in auto, information technology and pharma stocks.
The index started above the important 22,000 mark and maintained its gains throughout the session, ending at 22,041, up 130 points. On the daily charts, it formed a small bullish candlestick with a lower shadow.
According to experts, as long as the index trades above the downward-sloping resistance trendline, which is at 21,900, it could reach the record high of 21,126 in the coming sessions. Support is expected at 21,750.
On the weekly charts, the index gained 1.2 percent and formed a bullish candlestick with a long lower shadow, indicating buying interest at lower levels.
“The Nifty has consistently closed above the 21EMA (21,750) for the last few days, indicating a positive trend. The momentum indicator RSI (relative strength index) has experienced a bullish crossover following a base formation,” Rupak De, senior technical analyst, LKP Securities, said.
In the short term, the index can move towards 22,200 and a move above it can take it to 22,600. Support on the lower end is placed at 21,750, he said.
On the options front, the maximum Call open interest was at the 23,000 strike followed by 22,600 and 22,100 strikes, with Call writing at the 22,100 strike, then 22,800. While on the Put side, the 21,000 strike owned the maximum open interest followed by 22,000 and 21,700 strike, with writing at the 22,000 strike, then 21,000.
The data indicates that 22,000 is expected to be the immediate support for the index and 22,100 the resistance.
Bank Nifty
Bank Nifty tried to climb above the downward-sloping resistance trendline but could not, though the uptrend continued for the fourth day.
The index closed 166 points higher at 46,385. It formed a small bearish candlestick with a long upper shadow on the daily timeframe, indicating selling pressure at higher levels.
The index rallied 1.6 percent during the week and formed a bullish candlestick with a long lower shadow on the weekly scale.
“The short-term texture is on the bullish side but 50-day SMA (simple moving average) or 46,815 could act as a key resistance area for the traders. If it sustained above the same, then it could move up till 47,300,” Amol Athawale, Vice President-Technical Research at Kotak Securities said. Below 45,900, traders may prefer to exit long positions, he added.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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Technical View | Nifty closes in on record high, Bank Nifty holds 46,000 – Moneycontrol
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