NEW DELHI: Headline equity index Nifty found support above the 17,400 zones for the third straight session, indicating the formation of a strong base. The index formed a bullish candle on the daily scale.

Analysts said Nifty remains in a short-term uptrend as it has moved above the previous swing highs of 17,429 and made higher bottoms over the last few weeks.

“Now, it has to be above 17,500 zones for an up move towards 17,777 and 17,850 zones, whereas supports are placed at 17,442 and 17,350 zones,” said Chandan

of .

Options data suggests a shift in a trading range between 17,300-17,800 zones while an immediate trading range between 17,400-17,700 zones.

What should traders do? Here’s what analysts said:

Rupak De, Senior Technical Analyst at

The 50EMA remained below the index value on the daily chart, confirming the ongoing uptrend. The momentum indicator on the daily chart remained in the bullish crossover. The short-term trend remains positive, with the potential to take the Nifty towards 17,700. On the lower end, support is visible at 17,400.

Ajit Mishra, VP – Research, Broking
Markets are digesting the recent gains. However, the tone is still positive, thanks to noticeable buying interest on every dip. We see limited participation across sectors, so the focus should remain on stock selection.

Needless to say, further recovery in the global indices, especially the US, would strengthen the trend and help the Nifty50 to inch toward the 17,800.

Nagaraj Shetti, Technical Research Analyst, Securities

While the Nifty has moved up further after bouncing back from supports last week, the index is trading near strong resistances and needs to clear them to move higher. Upside momentum will pick up if the Nifty can cross the immediate resistance of 17,608.

We recommend a stock-specific approach and recommend buying from sectors that are showing relative strength.

Manish Shah, Independent Trader and Coach

Nifty is in a steady uptrend as the index has moved above its 20-day moving average. The MACD line has crossed above the zero level. Nifty should now see a steady rally to 17,900-17,950 as it is attracting buying at lower levels. We now only have three full days of trading before the October contracts expire. Expect the general tone of Nifty to remain bullish for a rally to 17,900-17,950 before the end of monthly expiry.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)