Immediate resistance is seen at 18,650 levels, said Nagaraj Shetti, Technical Research Analyst,
Nifty was trading above its 20-DMA (daily moving average) support, which is now placed around 18,450.
What should traders do? Here’s what analysts said:
Shrikant chouhan, Head of Equity Research (Retail), Kotak Securities
The inside body candle on daily charts is indicating non-directional activity and indecisiveness between bulls and bears. For bulls, 18,675 would be the important breakout level to watch out for. And above the same, we can expect a quick uptrend rally up to 18,800-18,835. On the flip side, trading below 18,500 may fuel further weakness up to 18,435-18,400.
Rupak De, Senior Technical Analyst at
Nifty witnessed a lacklustre trading session as the index failed to give any directional move. For any meaningful directional move, Nifty needs to go below 18,500 decisively or above 18,700 on a sustained basis. Support below 18,500, is pegged at 18,350/18,200. On the other hand, above 18,700, resistance is visible at 18,900.
Ajit Mishra, VP – Research, Broking
Markets are seeing time-wise correction and weak global cues are delaying the recovery. We feel the consolidation may continue for some time. However, buoyancy in the banking pack coupled with buying in select index majors may result in a further rebound. Meanwhile, we recommend continuing with a stock-specific trading approach and focussing on buying opportunities.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by
Nifty witnessed a brief consolidation in the range of 18,500-18,600 in the last couple of sessions and is poised for a recovery. In terms of the price patterns, the index has formed an Ending Diagonal pattern on the hourly chart whose follow through is expected on the upside. Going ahead, 18,650-18,670 is the immediate resistance zone beyond which fresh momentum can get built up. Overall short-term target continues to be at 19,000 with reversal below 18,500 on a closing basis. The Bank Nifty has taken a strong leap on the upside from the support zone of 43,000-42,900.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)