Nifty breaks out from range, Auto index forms Dragon-Fly Doji

The push and pull in the markets have finally seen some relief as Nifty formed a solid bullish candlestick pattern.

The index also broke out from a four day 200-point consolidation zone on the daily chart. In addition, it also broke past its 50-DEMA which was placed around the 11420 zone. Going forward, Nifty is likely to make an attempt to close the May 08, 2019 gap, which is around the 11530 mark.

 

With positive crossover on the RSI, the current momentum is likely to get extended further. On the downside, 11250 is crucial support. Bank Nifty on the other hand has also formed a solid bullish candlestick pattern breaking the four-day consolidation base. Going forward, the 29950 is the crucial resistance zone, while on the downside, 29100 is the crucial support area for the Bank Nifty.

 

The Nifty Auto index has bounced back and has formed a Dragonfly Doji pattern on the weekly chart. This is an early sign of a reversal on the cards, which indicates auto stocks like Bajaj Auto, Maruti and Hero Motocorp could attract buying momentum.

 

NIFTY TRADING TIPS