Tata Steel Near to Skyrocket: Can it Keep Burning Past ₹200?

The past week showcased the Nifty 50’s resilience. The index clung stubbornly above its 10-week exponential moving average (EMA) even during recent corrections, highlighting a steadfast uptrend. This bullishness was further emphasized by the formation of progressively higher peaks and troughs.

Daily charts echoed this sentiment, with the Nifty staying above all key moving averages. This dominance by the index underscored the prevailing optimism. The monthly charts mirrored this strength, with the Nifty extending its streak of consecutive highs for the fifth month, peaking on March 28th.

Market experts zeroed in on the crucial level of 22,200. They believe that breaching and holding this mark could propel the index to a record-breaking high of 22,526 soon. However, a watchful eye needs to be kept on the psychological support of 22,000, as a breach here could dampen sentiment.

The week wasn’t without its hiccups. Despite a brief surge past 22,500 on the expiry day, profit-taking pulled gains back, resulting in a modest 1% weekly rise to close at 22,327.

The RSI Smoothened indicator, after a recent dip, has reversed course, hinting at emerging buying opportunities. Experts foresee increased attention in the upcoming week, particularly centered on the previously resilient 22,500 level. A sustained climb or close above this level, as suggested by Rajesh Bhosale of Angel Broking, could confirm a resurgence of the primary uptrend, potentially unlocking further gains in April. He emphasizes the importance of 22,500 and 22,680 as significant hurdles to overcome.

Despite the bullish tilt, the “buy-the-dip” strategy remained popular throughout the week. Immediate support rests at 22,200, followed by crucial levels at 22,000 and 21,700. This underscores the importance of sound risk management during market volatility.