Nifty Index: Tech View: Nifty forms bearish engulfing top as 18K turns make-or-break level. What traders should do on Thursday
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Indicators such as MACD and RSI were slightly skewed on the negative side. Analysts say that the physiologically-important level of 18,000 is now becoming a make-or-break zone for the index.
Options data suggests a broader trading range between 17,600 to 18,600 zones, while an immediate trading range in between 17,900 to 18,300 zones.
What should traders do? Here’s what analysts said:
Ajit Mishra, VP – Research, Broking
The markets will react to the outcome of the US Fed meeting in early trades, and then the focus will shift to the MPC’s special meeting. The outcome of these events could trigger some volatility, but the market tone is likely to remain positive. We thus recommend focusing more on accumulating quality stocks on dips.
Mehul Kothari – AVP, Technical Research, Anand Rathi Shares & Stock Brokers
We would advise traders to wait for a clear buy signal above the 18,100 mark. If this happens, then the all-time high would be a mere formality to be breached. However, a close below 18,060 might trigger some profit booking in the market.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by
The index formed a bearish outside bar along with an engulfing bear candle on the daily charts, making today’s high of 18,178 a key resistance. The hourly chart also shows that weakness is creeping in again. Going ahead, 18000 will be the make-or-break level to watch out for. The short-term trajectory can remain positive as long as the Nifty sustains above 18000. On the flip side, a breach of 18000 on a closing basis will drag the index into consolidation mode.
Kunal Shah, Senior Technical Analyst at
The undertone remains bullish, and once the index breaks above 18,200, it will witness a sharp short covering on the upside towards the 18,500-18,800 levels. The lower-end support stands at the 17,950-17,800 zone, which will act as a cushion on the downside.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
