“Now, the index has to hold above 18,000 zone for an up move towards 18,188-18,300 zones whereas supports are placed at 17,950 and 17,888 zones,” said Chandan
of .
Option data suggested a broader trading range between 17,800 and 18,500 zones while an immediate trading range between 17,900 and 18300 zones. The negative crossover in RSI suggests short-term weakness.
What should traders do? Here’s what analysts said:
Manish Shah, Independent Trader and Coach
The larger degree trend in Nifty remains up. Nifty needs to break above 18,300-18,350 for the rally to continue. Major support is at 17,900. A drop below 17,900 will take Nifty below to 17,700. Brace for some very uncertain price movement over the next couple of days.
Ruchit Jain, Lead Research, 5paisa.com
In the last few days, Nifty has consolidated within the range of 17,950-18,300 wherein the index has witnessed buying interest in the range of 18,000-17,950. This would be seen as a make or break for the near term and hence, traders would be keenly watching this support.
Ajit Mishra, VP – Research, Broking
It is the new normal now that our markets start to consolidate when global indices face pressure. Going ahead, it would be critical for Nifty to hold 17,800 to maintain a positive tone. Meanwhile, participants should utilise this phase to add stocks on dips while focusing majorly on index majors and select midcap counters. Among sectors, we reiterate our preference for banking and auto and suggest remaining selective in others.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by
Despite multiple attempts recently, the Nifty couldn’t sustain above 18,200. The recent higher high in the index on the daily chart was not accompanied by higher high in the daily & the hourly momentum indicators. So, the momentum indicators developed negative divergence, thus indicating exhaustion in momentum on the upside. As a result, the index has stepped into a short-term consolidation. Overall, the index is expected to move down towards 17,800 in the short term. On the higher side, 18,100-18,120 will act as a near term resistance zone.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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