The market has been on a high the past week. In fact, the Nifty clocked its strongest weekly rally in 4 years. The big question now is how fast can it climb above 24,000? Market experts believe that technical indicators are signaling further upside, with strong institutional buying and positive global cues fueling the rally.
Nifty: What’s the next stop?
Most market observers highlight that the short-term market texture is bullish but there could be we could see some profit booking at higher levels. Most recommend buying on dips and selling on rallies. According to Amol Athawale, VP – Technical Research, Kotak Securities “In the near future, 23,100/75800 and the 50-day SMA or 23,000/75400 would act as key support zones, while 23,500-23,700/77400-78000 could be the key resistance areas for the bulls. However, if it falls below 23,000/75400, the sentiment could change, and traders may prefer to exit from their long positions.”
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Technical indicators suggest strong momentum, with Nifty forming a bullish engulfing candle on the weekly chart. Aditya Gaggar, Director of Progressive Shares, highlighted, “Nifty50 has ended its corrective phase with a strong bullish candle, breaking out of a Falling Wedge Formation, signaling a shift in trend towards a positive outlook. However, the hourly chart presents a different picture, showing extremely overbought conditions and suggesting the need for a price revision. Immediate resistance is at 23,560, with support shifting higher to 23,200”
Similarly, Om Mehra from SAMCO Securities pointed out, “The 9 EMA is on the verge of a bullish crossover with the 50 EMA, signaling upward momentum. The daily RSI remains comfortably above 65, a zone that typically reflects sustained strength and bullish undertones.”
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Nifty is currently in a higher high, higher low formation, which is a classic sign of an uptrend. However, analysts believe a short-term pullback may be constructive before the next rally. As per Mehra, “The support remains at 23,240 followed by 23,180, which could act as a cushion in case of any near-term retracement.”
Market recap
Indian stock markets ended the week on a strong note,
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