Technical charts suggest +ve momentum: Some technical analysts believe a pullback rally might be on the cards. “The bulls have entered the lower band of the current consolidation zone of 7,700-7,900 for the near term. A harami pattern and a bullish reversal pattern formed in a downtrend preceded by a big red candle indicate that the bulls are not letting the current momentum to be in favour of the bears. We expect the market to sustain the support zone of 7,700 and may see consolidation to continue with a strong resistance at 7,900,” said Mustafa Nadeem, CEO, Epic Research.
“A buy signal will be generated if we have confirmation of breach of the upward resistance line at 7,770, as we have already closed above the 50-day SMA,” said Nadeem.