Signalling upside continuation pattern, the headline index Nifty on Monday formed a long bullish candlestick pattern on the daily charts. “Now, it has to hold above 18500 zones, for an up move towards 18650 then 18881 zones whereas supports are placed at 18350 and 18250 zones,” said Chandan of .
Analysts said there is no indication of any reversal forming at the highs.
Options data suggests a broader trading range between 18000 to 19000 zones, while an immediate trading range between 18300 to 18800 zones.
The market breadth is skewed in favour of bulls. RSI is still holding the 70 levels, confirming the momentum. India VIX ended the session at 13.56 levels, suggesting that the market seems to be enjoying stability.
What should traders do? Here’s what analysts said:
Ajit Mishra, VP – Research, Broking
We may see some consolidation in the market amid mixed global cues. However, the bias would remain on the positive side. Participants should utilise the phase to add quality names, especially from banking, IT and auto space. Besides, they may consider selective bets from mid and smallcaps, citing the recent participation.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by
Structurally, the index has been forming an extension on the upside. Thus, the zone of 18400-18360 would continue to act as a crucial support area. As long as the index stays above this zone, it can stay on the upward trajectory from a short term perspective. Subsequent targets on the upside will be 18700 and 19000.
Nagaraj Shetti, Technical Research Analyst, Securities
Nifty, as per the weekly chart, is in a sharp uptrend movement, and there’s no sign of any tiredness/reversal observed at the highs. Having registered a new all-time high, the next upside target to be watched for the index is at 0.786% Fibonacci extension at 18955 levels (taken from June’s bottom, Sept top and Sept higher bottom as per the weekly chart). This could be achieved in the next 1-2 weeks. Immediate support is at 18350 levels.
(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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