Experts advise traders to maintain a positive bias and ride this momentum with a stop loss below 9,944 level for a target of 10,350.
With Monday’s gains and the formation of higher lows, analysts feel an initial momentum towards 10,350 level, followed by the 10,500 level on the index looks achievable.
One may watch out for event-based developments – Wednesday’s RBI policy outcome in particular, they said.
“The Nifty50 index opened in the positive and continued the upward move towards the 10,085 level. It formed a bullish candle on the daily chart and registered its highest daily close. It has been respecting its rising support trend line by connecting the recent swing lows of 9,543, 9,646, 9,838 and 9,944 levels. Now, the index has to hold above 10,020 level to witness a fresh rally towards the 10,250 level, while support is shifting higher to 9,950 mark,” said Chandan Taparia of Motilal Oswal Securities.
Despite mixed global cues, the Nifty50 opened higher and never fell below the 10,000 level during the session. It hit the day’s high of 10,085, before closing the day a tad lower at 10,077, up 62.60 points or 0.63 per cent.
“Traders are slowly getting confident about the sustainability of the ongoing rally above the 10,000 level. We advise traders to maintain a positive bias and ride this momentum with a stop loss below 9,944 level for a target of 10,350. However, weak negative breadth is still a cause for concern and any disappointment from RBI’s money policy review can provide enough ammunition to the bears, which can aid them in halt this rally,” said Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in.