Nifty 50 Breaks Range; Finally ‘Confirms’ Up Trend!

  • Stock Market Analysis
Aayush Khanna/Investing.com - Investing.com

Many traders might have gotten frustrated by now as the benchmark Nifty 50 index was going nowhere for the last 15 days. Although it was a great time for option sellers, directional players had a really tough time. But today’s session seems to be bringing some hope to these directional traders as the Nifty 50 has finally surged past its key resistance level of the last-15-day range.

As mentioned several times in my previous analyses, the resistance of 17,200 - 17,225 needed to be watched out for in case traders want to bet on the uptrend. The consolidation phase that had been going on since mid-March 2023 amid a downtrend was also an indication of demand starting to overpower supply.

Image Description: Daily chart of Nifty 50 (spot)

Image Source: Investing.com

At the opening tick, the index crossed this hurdle and is currently trading 1.19% or 205 points up at 17,285, by 9:43 AM IST. Now, what should be done?

Firstly, bearish positions should be squared off as the trend is clearly been establishing on the upside. Also, due to the oversold status of Nifty, the rally could stretch a bit which might lead to trouble for bears.

The range from which Nifty 50 is coming out is around 350 points in height. In technical parlance, the nearest target which can be expected after security breaks a range is the height of the range added to the breakout level. In the case of Nifty 50, this targeting mechanism is helping to gauge a rough target of 17,550 (spot). This is the level bulls should eye for.

So all in all, traders should start turning bullish on the index, after a long time. From here on, the level of 16,825 - 16,850 becomes good support. As long as this is not taken out, the market should be deemed to have been turned into buy-on-dip.

Read More: Rising Channel Breakdown: This F&O Laggard is Luring Bears!

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  • Kemburu S Prasad @Kemburu S Prasad
    Nifty rosé because of year end and mutual funds drama, from Monday or Tuesday back to 17000 and below…, don’t get trapped
    Like 4
    • Asish Mohapatro @Asish Mohapatro
      As Index is oversold..this is the time to take bet on upside upto targets 17500.The resistance zone comes at 17500-17600 from which market might retrace from there upto 17350…At that time if fresh buying happens then targets again 17500 plus if FII turns buyers and Global is positve then target upto 17800… When the market is fearfull you need to be greedy or you cant make money…All the causes you pointed out are factored in by investors …next watch the rally on upside…
      Like 2

      • Comment Guidelines

      We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

      • Enrich the conversation
      • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
      • Be respectful. Even negative opinions can be framed positively and diplomatically.
      •  Use standard writing style. Include punctuation and upper and lower cases.
      • NOTE: Spam and/or promotional messages and links within a comment will be removed
      • Avoid profanity, slander or personal attacks directed at an author or another user.
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  • NIRAV JARIWALA @NIRAV JARIWALA
    buy careepoint  227 target 250 intraday
    Like 1
  • namami ghosh @namami ghosh
    yaaaaay....
    Like 3
  • NIRAV JARIWALA @NIRAV JARIWALA
    sell icici bank 876 target  860 intraday
    Like 0
  • NIRAV JARIWALA @NIRAV JARIWALA
    sell bank nifty 40737 target 40350
    Like 2
  • Sri KIUmar @Sri KIUmar
    Being last day of FY 22-23, can expect volatility..as there would be squaring off of positions..so trade carefully
    Like 2
  • Nandakumar U @Nandakumar U
    Thanks for this clear understanding on the probabilities
    Like 3

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