Traders should not build aggressive longs and lighten their positions, especially in high-beta stocks. NEW DELHI: The Nifty50 zipped past the strong resistance at 9,950 level on Friday, Day 1 of September futures and options series, and boosted chances of the index hitting the 10,000 level early next week.
Besides, the MACD line crossed above the signal line, making a bullish crossover.
Experts believe the index could now face resistance at around 10,020 level, while it may find support at 9,990 level.
Chandan Taparia of Motilal Oswal Securities said the index has decisively surpassed its immediate hurdle of 9,928-9,950 and saw the highest daily close in last 16 trading sessions.
“It has been making higher lows from last three trading sessions and needs to hold above 9,928 to extend its upward move towards 10,020 and 10,050 levels, while on the downside supports are shifting higher to 9,900 and then 9,850 levels,» he said.
The index managed to stay above 9,900 level throughout the session. It closed the day at 9,974, up 56.50 points, or 0.57 per cent.
«The Nifty50 cleared the resistance at 9,948 levels, which negated the threat of a big price correction. With the breakout on the lower timeframe charts, the index should ideally head towards its next logical target at 10,046 level. However, the current rally from the lows of 9,685 is still part of a corrective structure and hence in the best scenario Nifty50 should get stuck up in the 10,000-9,700 range,» said Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
Mohammad advised traders not to build aggressive longs and lighten their positions, especially in high-beta stocks, as the index makes an attempt to head towards the 10,000-plus levels.