Nifty’s base is shifting higher and it is forming higher highs from the last six sessions. Now it has to hold above 19,850 zones to extend the move towards 20,150 then 20,200 zones while on the downside support is intact at 19,850 and 19,730 zones, said Chandan Taparia of Motilal Oswal.
Both price and momentum indicators suggested a continuation of the current up move.
India VIX was up by 1.59% from 11.60 to 11.78 levels. Volatility spiked to create momentum and cheer the bulls at lifetime high zones. Option data suggests a shift in trading range between 19700 and 20300 zones while an immediate trading range between 19800 and 20200 zones.
What should traders do? Here’s what analysts said:
Rupak De, Senior Technical analyst at LKP Securities
In the short term, the index is expected to stay positive. However, if it fails to surpass the 20,000 level, investors might engage in profit-taking. There is a support level at 19,800, which could attract buying interest during potential pullbacks.
Shrikant Chouhan, Head of Research (Retail), Kotak Securities
On daily charts, it has formed a bullish candle and on intraday charts it is holding higher bottom formation, which is largely positive. However, the short-term texture of the market is overbought, hence we could see some profit booking at higher levels.
For the trend following traders, 19850 would be the key level to watch out for and above the same, the market could move up till 20100-20150. On the flip side, below 19850 traders may prefer to exit from long positions, as any further correction could see the index retest the level of 19750-19700.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The present upside momentum is likely to continue for the short term and the next crucial upside resistance to be watched around 20,450, which is 100% Fibonacci projection-taken from important bottom-top-bottom as per weekly chart. Immediate support is at 19850 levels.
Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas
On the upside, we expect Nifty to target levels of 20,200 from a short-term perspective. We shall continue to maintain a positive outlook on the index. In terms of levels, 19880 – 19850 shall act as a crucial support zone as per the principle of role reversal, and on the upside 20150 – 20200 shall act as an immediate hurdle zone and our short-term target zone.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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