Headline equity index Nifty on Monday formed a Doji-type candlestick on the daily charts as it ended the session 0.47% higher and above the 18,200 mark. With an upper and long lower shadow, charts indicate indecisiveness between bulls and bears.

Chartists said a sustainable move above the high of Doji at 18,255 levels is likely to nullify the negative impact of the pattern. The momentum indicator RSI was in a positive crossover. Nifty supports are seen at the 18,100 level, while resistance is around the 18,350 mark.

The market will remain shut for trading on Tuesday on account of Guru Nanak Jayanti.

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

Rupak De, Senior Technical Analyst at
On the daily chart, the index remained above the previous swing high, suggesting an ongoing uptrend. Over the short term, the trend may remain bullish, with a potential to reach 18,300/18,600. On the lower end, support is placed at 18,000.

Ajit Mishra, VP – Research, Broking
Markets are gradually inching higher, tracking favourable global cues and supportive domestic factors. However, the lack of momentum indicates a bit of caution around the record high. Keeping all in mind, we feel participants should focus more on stock selection for now but avoid contrarian trades.

Nagaraj Shetti, Technical Research Analyst, Securities
The short term trend of Nifty continues to be positive. The market is now showing signs of sustainable up move into new swing highs. The next upside levels to be watched are around 18,350, and next 18,600 levels in the next 1-2 weeks. Immediate support is placed at 18,100.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Nifty is holding a higher bottom formation, but at the same time it is consistently taking resistance near 18,260 levels. For trend following traders, 18,050 and 18,000 would act as key support levels. If the index trades above 18,050, it could hit 18,300-18,350 levels. On the flip side, below 18,050, Nifty could retest the level of 17,950-17,900.

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


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