Nifty crosses 18,000 this time, says Sumeet Bagdia

Choice Broking expert said Nifty index has formed Doji candlestick on October 1 and also found support at middle Bollinger Band and 21-day SMA, which suggests further upside move in the counter.

Highlighting the reason for this NSE Nifty target, Sumeet Bagadiya said, “After setting an all-time high, the index showed some profit booking and retraced around 500 points, and again retested immediate support at the level of 17,452.90. Now a days, Nifty index is again coming back from support, which indicates a rally towards 18,000 points.” Bagadiya further said that Nifty is trading above Ichimoku cloud formation and 50-day SMA. The momentum indicator RSI (14) and Stochastic are also indicating a positive crossover, which supports the bullish trend.

Bagdia concludes, “At higher levels, once Nifty crosses the psychological resistance of 18,000, it may test the levels of 18,300 and 18,450. However, Nifty-50 index is expected to close around 17,450 and 17,300 levels. support can be found.”

Overall, after a breakout of its earlier consolidation of 15,900 on 3rd August 2021 and a rise of over 1400 points till 7th September 2021, the Nifty index has been in a continuous bullish trend for the past few days. Thereafter, the index has traded in a narrow range with consolidation and again reverted to the new milestone and made a new high on 17 September 2021 at the level of 17792.95.

From the high of 17792.95, the 50 stock index slipped nearly 500 points and fell to a low of 17326.10 on 21 September 2021. The day the index bounced back, closed with a positive move which was the fresh rally in the index, the index has risen more than 3 per cent from the low on 24 September 2021 and set a new benchmark at 17947.65 levels.

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