market outlook: Tech View: Nifty forms small bullish candle; needs to hold 12,150 to extend rally

NEW DELHI: Nifty on Wednesday zipped past the 12,200 level. The index formed a small bullish candle on the daily chart, which to an extent negated Tuesday’s indecisive Doji candle. Analysts said that a hold above 12,150 can push the index to record high levels, even as they remained cautious on the overall structure.

The index is stuck at the 78.6 per cent retracement level of the recent crack, said Mehul Kothari of IndiaNivesh Securities.

“A move above 12,235 would pull the index towards 12,300 level. A fall below 12,140 would apply some breaks to the ongoing momentum. We continue to have a cautious stance and traders are advised to remain light and avoid aggressive bets for the coming weeks since the market is still not out of the woods,” Kothari said.

For the day, the index rose 93.30 points or 0.77 per cent to 12,201.20.

“Nifty has given a bullish flag breakout on the daily chart, with decent volumes, suggesting if the index holds above 12,000, it would march towards fresh highs in the near term, said Rohit Singre, Senior Technical Analyst at LKP Securities.

The analyst sees immediate resistance in the 12,260-12,300 range.

“The index has been forming higher highs and higher lows for the last two trading sessions. Supports are gradually shifting higher after the consolidation of the last couple of sessions. The index needs to hold above 12,150 to witness an up move towards 12,280 and 12,350 levels. A major support stands at 12,000,” said Chandan Taparia, Technical & Derivative Analyst at MOFSL.