Tech View: Nifty forms Marubozu candle on Day 1 of March series. What should traders do on Saturday
Nifty on Friday ended the first trading session of the March series 366 points higher above the 22,300 mark and at fresh record highs. The index formed a bullish Marubozu candle on the charts.
“The index broke out of a two-month consolidation zone and such volatility contraction is usually followed by a strong rally. The 61.8% Fibonacci projection level from the start of Nifty’s rally since October is at 23,200. If the breakout is sustained a quick march towards 23,000 can be expected. The demand zone has now shifted upwards to 22,200-22,250 which is expected to act as support for Nifty,” Sheersham Gupta, Director and Senior Technical Analyst at Rupeezy, said.
The stock markets will be open for trading tomorrow in a special trading session from 9:15 am to 10 am and then again from 11:30 am to 12:30 pm.
What should traders do? Here’s what analysts said
Jatin Gedia, Sharekhan
On the daily charts, we can observe that the Nifty has broken out of a Running Triangle pattern indicating the start of a fresh leg of upmove. The daily Bollinger bands have begun to expand and prices trading along the upper band indicate that there could be sharp trending moves on the upside. We expect Nifty to target levels of 23,000 – 23,100 from a short-term perspective. On the downside, the zone of 21,900 – 21,860 shall now act as a crucial support zone and a breach below it shall lead to a trend reversal.
Tejas Shah, Technical Research, JM Financial & BlinkX
Nifty closed above the crucial resistance zone of 22,250-300 levels on a weekly
Read more on economictimes.indiatimes.com
