technical analysis and trading chart patterns

 Market Momentum strong further rally possible if Nifty holds 18,000.

If momentum continues and the Nifty50 holds psychological 18,000 mark, then 18,200-18,300 are expected to be next resistance levels to watch, with supports which shifted higher to 17,900 followed by 17,800 levels.

The Nifty50 remained in a strong momentum after bottoming out at 17,550 and continued its upward journey throughout the week ended April 28 to end above a three-month high. In fact, it was a great beginning for the May series, thanks to positive global cues and a fall in oil prices.

The index gained strength after an initial couple of hours of volatility and maintained a northward move for the rest of the session. The index hit an intraday high of 18,089 in late trade and finally settled with 150 points gains at 18,065, the highest closing level since January 24 this year.

The Nifty50 has formed a bullish candlestick pattern on the daily charts with higher volumes and making higher highs and higher lows for the fifth straight session. Also, there was a healthy breakout of a long downward-sloping resistance trendline adjoining highs of December.

There was a big bullish candle formation on the weekly scale with above-average volumes, as the index rallied 2.5 percent for the week, the highest weekly gains since July 2022.

 If the momentum continues and the index holds the psychological 18,000 mark, then 18,200-18,300 are expected to be the next resistance levels to watch, with supports which shifted higher to 17,900 followed by 17,800 levels.

As long as the index is trading above 17,900, the uptrend formation is likely to continue and could move up to 18,150-18,250.

On the flip side, below 17,900, traders may prefer to exit from the long positions.

Option data indicated that 18,000 is expected to be a crucial level for further market direction as on the upside it has room for up to 18,300 levels, with 17,800-17,900 as a support area.

Nifty suggests that a runaway rally might not take place from here. The Nifty index still has a lot of open interest contracts at the 18,000 straddle level.