Indicating the emergence of minor weakness from the highs, Nifty on Thursday formed a small negative candle on the daily charts but gave the highest closing of the last 16 sessions. Now, it has to hold above 17971 zones for an up move towards 18118, then 18181 zones, whereas supports are at 17888 and 17777 zones, said Chandan Taparia of Motilal Oswal.
The hourly momentum indicator has triggered a negative crossover, indicating that consolidation is likely in the near term.
India VIX moved up by 0.23% from 12.86 to 12.89 levels. Volatility was slightly up and needs to sustain at lower zones for bull’s way in the market.
Options data suggests a broader trading range between 17700 to 18300 zones, while a shift in an immediate trading range between 17850-18200 zones.
What should traders do? Here’s what analysts said:
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The short-term uptrend status of Nifty remains intact, and the market has started to face hurdles from near the highs of around 18150-18200 levels. A further decline from here could trigger minor weakness for the short term, and a sustainable move above 18150 levels could open more upside towards 18250 levels.
Rohan Patil, Technical Analyst, SAMCO Securities
The momentum oscillator RSI (14) on the daily chart witnessed a horizontal trend line breakout above 52 levels with a bullish crossover on the cards. In addition, the 9 EMA has a cross above 21 EMA, which can be termed a bullish golden cross in the benchmark index.
As of now, the index remains in a buy-on-dips mode, with immediate support placed at 17,900 levels and the near-term resistance capped below 18,200 levels.
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
On the way down, Nifty can retest the breakout zone of 18000-17950, where support in the key hourly moving averages are placed. The daily momentum indicator still has a positive crossover, and thus, in case of a dip, it should be bought into, and the strategy to trade would be to buy on a dip near the support zone 18000-17950. Today the Nifty has achieved our short-term target of 18100, and hence we revise the target upwards to 18300 with a reversal of 17850.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
A small bearish candle on daily charts is indicating a range-bound activity in the near future. For the bulls, 17950-17900 would act as a key support zone, while 18150-18200 would be the crucial resistance zone. However, below 17900, the uptrend would be vulnerable.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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