Tech View: Nifty may consolidate before decisive breakout. What traders should do next week

By Jason Junior On Apr 6, 2023

Why You Need a Separate Phone Line for Your Business

Oct 9, 2023

F&O Ban Today: F&O Ban: Delta Corp, Balrampur…

Apr 17, 2023

Nifty today formed a reasonable positive candle on the daily chart with a minor upper shadow. Chart readers said this pattern indicates a breather type movement in the market at the hurdle after a sharp upside movement from the lows recently.

Nifty is currently placed at the important resistance of previous opening downside gap of March 10 around 17,600 levels, said Nagaraj Shetti of HDFC Securities.

Nifty has support at 17,327 and 17,151, while it faces resistance at 17,701-17,801 levels.

With the market being closed on Friday for Good Friday, traders going into next week’s expiry are not expecting much action on either side, unless global markets give some big movements over the weekend.

Meanwhile, Nifty Bank also formed a bullish candle on weekly charts and is successfully trading above the 50-day SMA. For the index, 40,700 or the 50-day SMA could be the sacrosanct support zone and above which it could move up till 41,500-41,700, chartists said.

What should traders do? Here’s what analysts said:

Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The near-term trend of Nifty is positive. Having placed at the hurdle, there is a possibility of further consolidation at the highs in the next week before showing a decisive upside breakout of 17,600-17,700 levels. Immediate support is at 17,500.Amol Athawale, Deputy Vice President – Technical Analyst, Kotak Securities
We are of the view that 17,500 and 17,375 would act as key support areas for the index while 17,700 -17,800 could act as resistance zone. Meanwhile, the Bank Nifty has also formed a bullish candle on weekly charts and is successfully trading above the 50-day SMA. For the index, 40,700 or the 50-day SMA could be the sacrosanct support zone and above which it could move up till 41,500-41,700.

Amol Athawale, Deputy Vice President – Technical Analyst, Kotak Securities
Technically, after a long time, Nifty reclaimed the level of the 200-day SMA and has formed a bullish candle on daily and weekly charts. We are of the view that 17,500 and 17,375 would act as key support areas for the index while 17,700 -17,800 could act as resistance zone.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

Read original article here

Denial of responsibility! TechnoCodex is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – [email protected]. The content will be deleted within 24 hours.