“Support-based buying was seen at crucial support zones of 17,442 and held the index at higher zones. Now, it has to hold above 17,442 zones for an up move towards 17650 and 17,777 zones whereas supports are placed at 17,350 and 17,250 zones,” said Chandan
Options data suggests a shift in a trading range between 17,000 to 17,800 zones while an immediate trading range in between 17200 to 17700 zones.
What should traders do? Here’s what analysts said:
Rupak De, Senior Technical Analyst at
The trend is expected to remain positive as long as the Nifty sustains above the crucial support of 17,250. On the higher end, resistance is visible at 17,500 again: above 17,500, the index may move towards 17,700. The immediate support is placed at 17,250, below which the index may lose its current trend.
Ajit Mishra, VP – Research, Broking
Nifty crossed the hurdle at 17,400 after two weeks of consolidation, and we now expect a gradual recovery to the 17,600+ zone. Apart from the global markets, we feel participation of key sectors on a rotational basis would be critical for a sustained up move. Amid all positivity, traders should maintain their focus on overnight risk management.
Nagaraj Shetti, Technical Research Analyst, Securities
A reasonable positive candle formed on the daily chart with a gap-up opening. Nifty now attempts an upside breakout of the crucial overhead resistance at 17,425 as per the concept of change in polarity.
This is a positive indication, and further upside from here could open a sharp follow-through upside for the market ahead. The positive sequence of higher tops and bottoms is confirmed, and the market is currently moving towards the formation of new higher tops of the sequence. Still, there is no indication of any higher top reversal as of now.
The short-term trend of Nifty continues to be positive. A decisive move above 17,450-17,500 levels is likely to bring bulls back into the driver’s seat, and that could pull Nifty towards the upside target of 18,000 levels in the near term. Immediate support is placed at 17425.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by
In terms of the Fibonacci retracement, a 61.8% retracement of the entire September decline i.e. 17,580, is expected to keep the current bounce in check. The zone of 17,500-17,600 encompasses multiple technical parameters, which are expected to attract fresh rounds of selling. Unless this zone is crossed on a closing basis, Nifty can start sliding down again. Failure to sustain this level will push the index back to 17,300-17,200 in the coming sessions.
Manish Shah, Independent Trader
Nifty is now in a trajectory where the probabilities of a sustained rally have improved substantially. Nifty has moved above the 20-period average, and MACD is in a buy mode. This market is now a buy on declines. The lateral movement seen today is a testimony to the fact that selling is getting absorbed without too much damage to the price.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)