Chartists said though Nifty is advancing gradually on the upside, its consistent up move above the hurdles signals more upside ahead. “A decisive movement above 17,800 levels is expected to open the next upside target of 18,200 levels in the near term. Immediate support is at 17,650 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
What should traders do? Here’s what analysts said:
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
For trend-following traders, 17,650 would act as a key support level, and above the same, the Nifty could move up to 17,800-17,835. On the flip side, below 17,650, a quick intraday correction is likely, which could pull down the index to 17,550-17,500.
Rahul Ghose, Founder & CEO – Hedged
Nifty is currently forming small-bodied Doji candles in its resistance zone, signalling consolidation before the next leg of the rally starts. Open Interest data still suggests that the uptrend is intact, and buying on dips is the strategy to be deployed. A lot of individual stock names are currently forming inverse head-and-shoulder patterns – a bullish pattern – which, on its neckline breakout, can lead the next leg of rally.
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
Despite the negative divergence on the hourly momentum indicator, there is no weakness on the price front, and the best strategy to trade such an up move is to hold on to the long positions with a trailing stop loss mechanism. Since the last seven trading sessions, Nifty has not dipped below the previous day’s low, an extremely bullish sign, and can also be used as a crucial level for holding on to the long positions.
In terms of levels, crucial support is placed at 17,655 – 17,650, while an immediate hurdle is at 17,700 – 17,730. Overall, the uptrend is still intact, and we expect Nifty to target levels of 17800 from a short-term perspective.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
