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After rising for three consecutive weeks, Nifty has managed to continue with bullish momentum in the start of the current week also. Nifty has managed to surpass the psychological resistance placed at 18,000. From the bottom of 16,410, registered on December 20, 2021, Nifty has shown recovery of almost 10 percent in the span of 16 sessions while Bank Nifty has recovered 13 percent from the low of 34,018 in the same period. Bank Nifty has formed bullish rounding bottom formation on the daily charts, which indicates more upside room for the Index in the coming days.

Last Week, Nifty surpassed the crucial resistance of the previous swing high placed at 17,640. Nifty has also surpassed the 61.8 percent Fibonacci retracement level placed at 17,766, which has negated all the bearish developments on the medium term chart.

Nifty is now placed above 5, 10, 20, 50, 100 and 200 DMA (day moving average), which indicates the bullish trend on all time frames. On the weekly charts, Nifty has broken out from “Flag” pattern, which indicates the bullish continuation trend. Previous resistance of 17,640 is now expected to act as a short term support for the Nifty going forward.

Indicators and oscillators like MACD (moving average convergence divergence), RSI (relative strength index) and DMI (directional movement index) have reached bullish territory and showing strength in the current daily and weekly uptrend.

To conclude, we believe that Nifty is in uptrend and dips should be utilized to create longs positions. Support for the Nifty is seen at 17,640. Upside targets for the Nifty are seen at 18,210 and 18,610.