“Now, it has to hold above 18000 zones for an up move towards 18,200 and 18,350 zones whereas supports are placed at 17,900 and 17,777 zones,” said Chandan
Options data suggests a broader trading range between 17,200 to 18,500 zones while an immediate trading range in between 17,700 to 18,200 zones.
What should traders do? Here’s what analysts said:
Rupak De, Senior Technical Analyst at
Nifty has moved up after a consolidation breakout on the daily chart, suggesting a rise in optimism. On the daily timeframe, the index has sustained above the crucial moving average, confirming the short-term uptrend. Over the short term, the trend may remain positive. On the lower end, support is visible at 17,850/17,700; resistance on the higher end is placed at 18,100/18,300.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
As long as the index trades above 17,900, the uptrend formation is likely to continue, and above the same, it could touch 18,100-18,150 levels. Below 17,900, traders may prefer to exit long positions, and on further decline, it could retest the 17,800 mark.
Manish Shah, Independent trader and coach
The underlying trend structure in Nifty is bullish. If Nifty does break above 18000-18100, it could trigger a big fat rally to 18,800-18,900 or higher to 19,500 over the next couple of weeks. Traders should hold on to long trades as the underlying sentiment is bullish. Major support in Nifty is at 17500. As long as this holds, Nifty remains in the bullish zone.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by
Nifty saw a range shift on the higher side on October 31. Until last week, the level of 17,800 was acting as a key hurdle. However, today, with a gap up opening, the index has surpassed that barrier. The Nifty has now entered the next resistance zone on the higher side, which is 18,000-18,100. The index had stumbled near this zone in August & September this year. Thus one needs to be vigilant at this level. Unless that resistance zone is crossed on a closing basis, the index can stay in consolidation from a short to medium-term perspective. On the downside, today’s gap area of 17838-17900 will act as a near-term support zone.
Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities
Nifty is likely to be on the front foot in the near term with aggressive targets at its all-time high at the 18,605 mark. Hopefully, a dovish Federal Reserve on November 2 will lead to a new uptrend on Dalal Street. Investors will also be eyeing RBI MPC’s unscheduled meeting on Thursday and the US October jobs report on Friday.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)