For the day, the index made a Bullish Candle on the daily chart and formed higher highs and higher lows for the second session. If it manages to break above the 10,138 level, then it would look to take out the 10,200 level in the short term, analysts said.
“It seems that the index is headed towards the recent high of 10,137. Despite this, we believe a better trade would be outside the index. The kind of moves we have been witnessing in individual stocks since the past few days is quite mesmerising. We would continue to focus on individual stocks wherein percentage-wise moves are much bigger. For Wednesday, the 10,028-10,000 zone should be a key support zone,” said Sameet Chavan of Angel Broking.
At Tuesday’s close of 10,093, the index was up 87 points, or 0.87 per cent.
Mazhar Mohammad, Chief Strategist for Technical Research & Trading Advisory at Chartviewindia.in, said the breakout above the 15-day-old ascending channel on lower timeframe charts suggested that the decks have been cleared for the Nifty50 to hit a new lifetime high.
“The breakout has thrown up a new near-term target around 10,205. As long as the Nifty sustains above the 10,000 level on a closing basis, one should trade on the long side. Traders are advised to keep a stop loss at 9,960 and shop for stock-specific opportunities,” Mohammad said.
Chandan Taparia of Motilal Oswal said the Nifty has been making higher highs and higher lows from last two sessions and has gained momentum after it broke out of the range between 9,850 and 9,980 levels. Now the index has to hold above 10,050 to extend its move towards 10,138 and then 10,200 levels, while on the downside, supports are seen at 9,980 and then 9,928 levels.
Mustafa Nadeem, CEO of Epic Research, has broken away from a triangle pattern as it almost touched the 10,100 mark on a closing basis. On the F&O front, the zone between strike prices 10,200 and 10,300 remained active, while a shift was seen to strike price 9,900 from 9,800.
“We expect the trading range to be on the higher side with the next resistance in the 10,140-10,190 zone, while supports are seen in the 10,020-9,980 range,” Nadeem said.