Morning Star on the Nifty50 indicates that more gains are on the way.

On Monday morning, after the Nifty50’s four-day losing streak came to an end, a Morning Star pattern appeared on the daily chart of the index.

The three-candlestick reversal formation indicates that profits are on the horizon. It is believed by analysts that the index must maintain a level above the 17,580 mark in order to continue to rise.

According to Mazhar Mohammad of Chartviewindia.in, the Nifty50 fell below its 20-day exponential moving average (EMA) on Friday, indicating a correction.

“As long as the index remains above 17,581, there is a chance that the recent all-time highs will be challenged. On the other hand, if you see a small candle body on Monday, it could be a sign of trouble. If the Dow Jones Industrial Average closes below 17,580, the stock market is in trouble.” Mohammad clarified a few points for me during our conversation.

Manish Shah, an independent market analyst, provided two possible explanations for the index’s reversal of fortune.

“On Monday, the Nifty50 reversed an Island Reversal pattern, which is what is to blame for the current situation. It was possible to reinforce the bullishness by creating a bullish Morning Star with a rising trendline. The relative strength index (RSI) for the Nifty50 index briefly fell below 60 before rising, providing a buy signal.” The announcement was made by Shah.

Over the course of the trading session, the index gained 159.20 points, or 0.91 percent, of its total of 17,691 points

“As indicated by the stochastic oscillator, the Nifty50 index has risen above its 20-day moving average and is currently in an uptrend.. Since then, it has maintained a price above the 21-EMA on an hourly basis as support. A bullish momentum indicator known as the Parabolic SAR has formed below the candles, indicating that the market is gaining momentum. For the time being, 17580 serves as both immediate support and resistance for the index.” Choice Broking broker Sachin Gupta stated that this was the case.

According to Chandan Taparia of Motilal Oswal Securities, the index has rejected the formation of a lower high after five sessions in the market. He believes that the index must remain above 17,700 in order to reach the higher levels of 17,777 and 17,855, which he believes are achievable. He believes that the index will find strong support between 17,580 and 17,450.