Nifty50 index prone to scale 16,000 in Q2, say technical analysts

The benchmark Nifty50 index hit a recent excessive for a second day in a row on Friday, closing at 15,435.65. Analysts imagine the index might head in direction of 15,600 within the close to time period as many technical indicators are at present flashing constructive indicators.

Nevertheless, given the sharp rise over the previous two weeks, traders have to hold a detailed watch on key assist ranges reminiscent of 15,400 or 15,350.

“We may even see extra upside within the close to time period if index manages to carry above 14,350, quick assist is close to 15,400-15,350 and quick hurdle 15,500-15,600 zone,” mentioned Rohit Singre, senior technical analyst, LKP Securities.

MarketSmith India in a be aware mentioned the Nifty will stay in a “confirmed uptrend” as lengthy it manages to take care of its 50-day shifting common (DMA) which is round 14,762. “If the index fall breaches its key shifting averages, we could change the market standing to an ‘Uptrend Below Stress’,” it mentioned.

Consultants mentioned the efficiency of banking and power shares, primarily Reliance Industries, would be the key for the market to carry on to present ranges.

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“The anticipated ranges of the market are prone to be within the vary of 15,250 and 15,600. The momentum indicators like RSI (relative power index) and MACD (shifting common convergence divergence) point out potential upside from the present market stage,” mentioned Ashis Biswas, head of technical analysis, CapitalVia International Analysis.

The RSI for the market is at present within the mid-range of round 66. A breach of 70 is taken into account to be a bearish sign because it signifies that the market is overbought. Equally, the MACD, thought of a momentum indicator, is giving a bullish studying.

In the meantime, analysts have additionally give you a medium-term goal of 16,400 for the index. They are saying one other 6 per cent upside from the present ranges can be pushed by shares within the monetary, shopper items, and car area.

“The goal of 16,400 over the subsequent quarter can be led by BFSI, consumption, auto and infra. Within the course of, we don’t anticipate the index to breach the important thing assist threshold of 14,600. Thus, dips ought to be capitalised on to build up high quality large- and mid-caps,” mentioned Dharmesh Shah, head-technical, ICICI Direct.

Consultants mentioned the markets subsequent week will take cues from the Reserve Financial institution of India’s coverage assembly, the place the central financial institution is broadly anticipated to take care of an accommodative stance.

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