Unstoppable rally pushes Nifty into uncharted territory; bulls set eyes on 15,000 mark!

Nifty opened the session on a soft note on Thursday and the profit booking continued, which had begun in the last leg of the trade on Wednesday.      

As a result, Nifty made a low of 14,714.75, which also happens to be the median price of Wednesday’s session. Besides, the zone of 14,720-14,755 was a change in the polarity zone, which says that once a resistance level is breached, it becomes support levels. Taking support from this level, the index bounced nearly 200 points from the lows and Nifty made a new all-time high of 14,913.70.  However, it closed just below the 14,900 mark, up by 0.71 per cent.    

Bank Nifty had emerged as a superhero as it bounced more than 1,100 points from the day’s low and closed above the 35,000 mark for the first time ever. Among the banking pack, PSU Banks were the showstopper as Nifty PSU Bank index jumped more than 5 per cent, aided by better-than-expected earnings reported by the leader of the pack i.e. SBI. All the components of the PSU Bank index ended in the green today.     

Meanwhile, Nifty had formed a bullish candle with a lower shadow, carrying higher high & higher low and indicating the continuation of a positive bias. At the same time, the index negated a bearish implication of spinning top, which was formed on Wednesday. Further, the implication of a bearish candle, which was formed on the weekly chart, has also been negated.       

Considering the robust price structure, participation seen across the board, and every dip being bought, make us believe that Nifty is likely to scale towards the 15,000 level in the near term.    

Hence, we remain bullish and advocate our readers to adopt a buy-on-dips strategy. Interestingly, the opening upside gap, which was formed on February 2, remains unfilled after three sessions of its formation, which is positive. Along with this, the MACD has witnessed a bullish crossover, which occurs when the MACD turns up and crosses above the signal line.       

Going ahead, Nifty has its support placed in the region of 14,700-14,750, and as long as the index trades above this level, the target of 15,000 is achievable. Besides, the level of 15,000 also coincides with the upper Bollinger Band.