Now, it has to cross and hold above 18,666 zones to witness an up move towards 18,786 and 18,888 zones, while on the downside support exists at 18,580 and 18,530 zones, said Chandan Taparia of Motilal Oswal.
Options data suggests a broader trading range between 18450 to 18900 zones, while an immediate trading range between 18550 to 18800 zones.
What should traders do? Here’s what analysts said:
Rupak De, Senior Technical at LKP Securities
Nifty experienced periods of selling pressure throughout the day. Despite this, the Put writers were successful in preventing the index from falling below the 18600 level. If Nifty manages to stay above this level, the trend is likely to remain sideways to positive. However, there is resistance observed at the 18800-18900 levels on the higher end.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
Nifty has been moving up as per a bullish pattern like higher tops and bottoms in the last few weeks on the daily timeframe chart. Thursday’s swing high could be considered as a new higher top of the sequence and further weakness for the short term is expected to be a higher bottom of the sequence. At the lows, Nifty could find cluster support like ascending trend line, 10-day and 20-day EMA around 18,560-18,450 levels.
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
On the daily charts, we can observe that Nifty has faced selling pressure from around the short-term target and the resistance zone of 18,800. Nifty was unable to carry on the positive momentum from the previous trading session which is a signal of caution from a short-term perspective. The crucial support zone is placed at 18,530 – 18,500 and until this is held on the uptrend is intact.
On the upside, today’s high of 18,778 – 18,800 shall act as an immediate hurdle zone for the Nifty.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
The medium-term formation of the index is still on the bullish side. For traders, as long as the index is trading below 18,725, the technical correction is likely to continue. Below this the market could slip to 18,600-18,550. Contra traders can take a long bet near 18,550 with a strict stop loss at 18,520.
(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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