Gold Silver Reports – Nifty Faces Resistance at 10,400 – The Nifty50 on Thursday continued to form higher highs and higher lows and settled the October series futures & options contracts at a fresh closing high of 10,343. The index made a Strong Bullish Candle on the daily chart and was on the verge of hitting the overbought territory as suggested by its 12-day relative strength index (RSI).
The 50-pack index opened marginally lower and stayed in the negative terrain in morning trade only to re bound and hit a record high of 10,355 during the session. The index saw some sharp moves due to expiry of October series futures and options contracts, before eventually closing the series at 10,355. The index rose 48.45 points, or 0.47%, for the day.
“Albeit the trade is looking positive on the long side, it is fast approaching the critical resistance zone at 10,400-600, in which multiple resist ance points are placed on the longterm charts. With no technical weakness visible as of now, traders are advised to ride this upward move with a tight stop loss placed below 10,237 on a closing basis,“ said Mazhar Mohammad, chief strategist for technical research & trading advisory , Chartviewindia.in, adding they can go for part profit booking around the 10,430 level.
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Volatility was observed in the second half of the session, but strong buying in the last hour of trade helped the index close at a new high, said Rajesh Palviya, Head of Technical & Derivatives Analyst, Axis Securities.
“The index managed to hold its bullish gap area formed on October 25 (10,237-10,240), which is likely to remain an immediate support zone. The short-term trend is likely to remain bullish and we can expect the Nifty50 to get past the 10,380 and 10,450 levels in the near term,“ Palviya said. – Neal Bhai Reports
