“However, the medium-term sentiment is still bullish. A fresh uptrend is possible only after the breakout of the 17,425 level and above the same, the index could hit 17,500-17,550 levels. On the flip side, below 17,425 the index could slip till 17,200-17,150,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
Now, the index has to hold above 17,300 for an up move towards 17,442 and 17,500 zones, whereas support can be seen at 17,167 and 17,071 zones. Options data suggests a broader trading range in between 16,800 to 17,700 zones, while an immediate trading range is between 17,000 to 17,500.
What should traders do now? Here’s what analysts said:
Rupak De, Senior Technical Analyst at
The trend is likely to remain positive over the short term. On the lower end, 17,250 may act as crucial support. On the higher end, the index may extend its rally to 17,600-17,700.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
On the daily charts, Nifty has formed a small bearish candle, which is indicating temporary weakness. However, the medium-term sentiment is still bullish. A fresh uptrend is possible only after the breakout of the 17,425 level and above the same, the index could hit 17,500-17,550 levels. On the flip side, below 17,425, the index could slip to 17,200-17,150.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by
Nifty faced resistance near the 50% retracement of the entire September decline. The index stumbled near 17,400-17,500 and ended near the low point of the day. 20-DMA is also present in this zone, adding to the downside pressure. Thus, the index looks set to move down to test its key hourly moving averages near 17,200. Overall, the structure shows that Nifty is poised to form a consolidation in the 17,000-17,500 range.
Siddhartha Khemka, Head – Retail Research,
Indian equities are likely to consolidate for a while before starting the next leg of the rally. We expect Nifty to consolidate around 17,200-17,400 zones and then head towards 17,600-17,700. With the earning season about to begin and pre-quarterly updates coming in, we expect stock-specific action to continue. Globally, investors would track US jobs data on Friday which is crucial in the current environment of rising interest rates.
Om Mehra, Choice Broking
Technically, Nifty formed a Doji candle in the daily chart, which suggests indecisiveness among traders. The index needs to move above 17,500 for a directional move. However, Nifty has failed to close above 50-DMA, which would be worrisome for bulls. Indicators such as RSI remained in the neutral zone, while the Bollinger band indicated 17,500 would remain strong resistance for the next trading day.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
