Nifty formed a Doji candle on the daily chart as the closing was near its opening levels and a bullish candle on the weekly chart.

Nifty started off the day at 14816 and stayed higher through the session. It rose 98 points to 14823 after hitting an intraday high of 14863 and a low of 14765.

Nifty retained the uptrend for the third consecutive session and closed above the 50day simple moving average, backed by metals and HDFC group stocks.

Market opened with a gap up tracking heavyweights gains and was able to maintain its optimism to the end, supported by the global market. Global bourses were largely positive as easing restrictions on movement in the US & Europe along with the expectation of better US job data signalled a faster economic rebound in the western markets. Metals stocks are continuing its upbeat movement on improved sectoral outlook while mid-cap stocks underperformed their peers.

Technical picture appears to be tilting slightly in favour of the bears as the Nifty registered a second consecutive bullish candle on weekly chart, hinting at strong base formation around 14420 level.

Moreover, on daily chart, Nifty not only closed above its 50day simple moving average but daily MACD generated a buy signal after a long gap, suggesting that underlying trend may be strengthening in favour of bulls.

Despite this, the price action remained narrower inside the point trading range, which is a cause for concern as it depicts a weak candle with a Doji kind of indecisive formation. Hence, Nifty may not be completely out of the woods unless it registers a strong close above 15051.

It is critical for the index to sustain above the day’s minor bullish gap area present between 14765/ 14744 to retain a bullish bias going forward, as a close below 14744 in the next couple of sessions can again drag the trend into sideways consolidation mode with negative bias with initial targets of 14500 level.

Traders should wait for further strength before initiating fresh long positions in the index.

Sector Wise :-  Nifty Metal index rallied 4.7 percent, whereas PSU Bank index was the only loser.