“Now, Nifty has to hold above 18,000 zones, for an up move towards 18,350, then 18,500 zones whereas supports are placed at 17,950 and 17,888 zones,” said Chandan
The index maintained its position above its 200-DMA, and the momentum indicator RSI is in a bullish crossover.
Options data suggests a broader trading range between 17,600-18,600 zones, while an immediate trading range is between 17,900-18,300 zones.
What should traders do? Here’s what analysts said:
Manish Shah, Independent Trader and Coach
Nifty continues to trade in a narrow range, hovering around the resistance at 18,100-18,200. A break above 18,200 will mean a continuation of a rally to 18,600-18,700. As long as Nifty holds above 17,900. Hold on to long trades.
Ajit Mishra, VP – Research, Broking
Markets have been maintaining a positive tone amid the consolidation bias, which clearly shows buying interest among the participants. Though all the sectors are contributing to the move, we reiterate our view to stick with the sectors/stocks which are participating in the move instead of laggards. For cues, the performance of global indices and earnings will remain in focus.
Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities
A bullish candle on weekly charts and uptrend continuation formation on daily charts is indicating the continuation of an uptrend in the near future. Technically, as long as Nifty is trading above the 10-day SMA (Simple Moving Average) or 17900 level, the uptrend wave is likely to continue. Above this the index could move up to 18300-18500. If the index closes below the 10-day SMA, it could slip till 17,800-17,700.
Nagaraj Shetti, Technical Research Analyst, Securities
The short term trend of Nifty remains up, and the market is now placed to show a decisive up move above the hurdle of 18,100-18,200 levels. A further sustainable up move from here is expected to pull Nifty towards 18,500-18,600 levels in the near term. Immediate support is placed at 17,950 levels.
Nifty is moving in an upward positive channel, encountering support and resistance along the way.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by
On the higher side, 18,200 is a key barrier for the short term. Unless that gets taken out, the index is likely to have a short-term consolidation. On the downside, a breach of the level of 18000 will turn the structure in favour of the bears. In that case, the Nifty can test 17800 on the downside. Overall, 17800-18200 will be the short-term consolidation range.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)