Gaurav Ratnaparkhi of Sharekhan said the index could not gather follow through momentum after a firm start.
“It crossed the barrier of 16,700 with a gap up opening, but stumbled near the daily upper Bollinger Band, which was near 16,800. As a result, the index couldn’t sustain in the higher territory and moved back towards the key hourly moving averages. Nevertheless, it continues with higher top higher bottom formation on the daily chart. Also, the index is still trading above its short term support zone. We maintain our short term positive stance,” he said.
For the day, the index closed at 16,584.30, up 43.70 points or 0.26 per cent.
Yesha Shah of Samco Securities said that the index is expected to give an immediate resistance breakout, indicating continuance of the bullish short-term trend.
“However, there is no substantial proof that the corrective phase has concluded. Given this, we recommend that traders retain a mildly bullish to cautious perspective going ahead and use a stock-specific buy-on-dips strategy. Nifty50’s next immediate resistance level is currently set at 17,400,” she said.
Amol Athawale of Kotak Securities said while short-term texture of the market is still on the bullish side, on weekly charts the Nifty has formed a Hammer candlestick formation, which is indicating further weakness from the current levels.
“On the higher side, the 50 day SMA or 16,850 would act as a key resistance level and above the same the index could hit the level of 16,950-17,000. Similarly, on the lower side, 16,450 would be the sacrosanct support zone. Below the same, the chances of hitting 16,350-16,300 appear bright,” Athawale said.
Nifty Bank
Kunal Shah of
said the index has formed a Bearish Engulfing candle on the last of the week, indicating stiff resistance on the upside at the 36,000 level.
“The bears took over the market and the index ended at a day’s low. The lower-end support zone stands at 35,000-34,800 levels and if it fails to hold this level will trigger further selling pressure,” Shah said.
Chandan
of Securities said that the index has underperformed Nifty and has drifted below its 50-Day EMA. “It has to hold above 35,250 for an up move towards 35,750 and 36,000 while on the downside support exists at 35,000 and 34,750,” Taparia said.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
