Nifty today formed a small negative candle on the daily charts, signalling that bulls are finding it tough to hold higher levels. Now, it has to hold above 18,200 zones, for an up move towards 18,350 then 18,442 zones whereas supports are placed at 18,088 and 17,950 zones, said Chandan of .
Option data suggests a broader trading range in between 18,000 and 18,600 zones while an immediate trading range in between 18,100 and 18,400 zones.
What should traders do? Here’s what analysts said:
Nagaraj Shetti, Technical Research Analyst,
The uptrend status of Nifty as per long-term charts like weekly is still intact and present consolidation or minor weakness in the market could be considered as a ‘buy’ on dips opportunity. As long as the support of 18,100-18,000 levels is protected, one may expect consolidation movement to continue. A decisive move above 18,400 levels is likely to open a new all- time high of 18,600+ levels in the near term.
Ajit Mishra, VP – Research,
It’s prudent to limit positions and focus on sectors/stocks which are showing higher relative strength. Also, maintain strict risk management rules in place, citing the possibility of a rise in volatility due to scheduled F&O expiry.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by
Nifty is expected to form the next leg down, which can drag the index to 18,100-18,000. Overall structure shows that all this price action is a part of the short-term consolidation, which is expected in the range of 18,000-18,450. Immediate resistance zone for the Nifty is at 18,300-18,325.
Kunal Shah, Senior Technical Analyst at
The index lower-end support is visible at 18,200-18,150, which will act as a cushion for the bulls. The bulls need to cross the level of 18,350 decisively to continue the momentum on the upside toward the 18,500 level.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)