Analysts said the index has been trading above its 21-DMA, which adds bullishness to prices.
“Now, Nifty has to be above 17,500 zones for an up move towards 17,777 and 17,850 zones whereas supports are placed at 17,442 and 17,350 zones,” Chandan
Options data suggests a shift in a trading range between 17,300-17,850 zones.
What should traders do? Here’s what analysts said:
Rupak De, Senior Technical Analyst at
On the daily chart, the index has sustained above the 50-EMA. The momentum indicator RSI is in bullish crossover and rising. Over the short term, the index is likely to move higher towards 17,700. Support on the lower end is visible at 17,400/17,250.
Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities
Technically, Nifty successfully surpassed the 20 and 50 day-SMA resistance mark, which is largely positive. 17,500 and 17,400 would act as key support zones. Above which, the index could move up to 17,800-17,950. On the flip side, if the index closes below 17,500 or 50 day SMA mark, it could slip till 17400-17350.
Ajit Mishra, VP – Research, Broking
Markets have been showing resilience amid mixed cues, however, the participation is largely restricted to select sectors and stocks. Besides, inconsistency on the global front is also keeping the momentum in check. We repeated our to stick with the top performers while keeping a check position size.
Gaurav Ratnaparkhi, Head of Technical Research, by Sharekhan
The Nifty was forming a base near the key weekly moving averages for the last three weeks. It had also taken support near the 200-DMA. The level of 17,000 acted as a crucial support.
From there, the index took a leap in the week gone by. The index has reached the 61.8% retracement of the September fall & the daily upper Bollinger Band, a crucial resistance zone. Despite multiple attempts in the last week, the Nifty couldn’t sustain above 17,600. Thus the index is preparing for a downward move again. It can tumble down towards its key daily moving averages, near 17,300-17,200.
Ruchit Jain, Lead Research, 5paisa.com
Looking at the chart structure, the short-term momentum still seems to be positive, and until the index breaks, any important support traders should continue to trade with a positive bias and look for buying opportunities on declines. But one is very stock specific in selecting stocks for trading and avoiding underperforming ones.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)