A small negative candle was formed on the daily chart with a minor upper shadow. Technically, this pattern indicates a lackluster type of movement in the market at the highs, said Nagaraj Shetti, technical analyst, HDFC Securities.
“The short-term trend of Nifty continues to be positive with rangebound action. The present consolidation movement is expected to continue within a high low range of 18700-18500 levels in the next 1-2 sessions,” Shetti said, adding that a decisive move above 18700-18800 is expected to bring more upside for the near term.
Shrikant Chouhan, Head of Research (Retail), Kotak Securities:
Technically, on daily charts, the Nifty formed a small bearish candle, indicating indecisiveness between the bulls and bears.
As long as the index is trading above 18550, the positive sentiment is likely to continue.
Above the same, the index could rally till 18650-18700. On the flip side, below 18550, the selling pressure is likely to accelerate. Below which the index could slip till 18500-18450.
Rahul Ghose, Founder & CEO, Hedged:
The Nifty index on Monday saw put writing at the 18600 and the 18700 levels. The 18700 level becomes an in-the-money option, signaling bullishness for the week.
The closing candle although today was not a great one. It symbolises a spinning top that is coming on top of a rally.
A spinning top formation on top of the rally is usually a sign of a correction which is contrary to what the open interest data is suggesting.
Both the mixed signals should be read at a possibility of a consolidation phase continuing for this week’s expiry.
Kunal Shah, senior technical & derivative analyst, LKP Securities:
The Nifty index is currently experiencing a sideways trend, indicating a lack of clear direction in its price movement. This sideways movement is accompanied by low trading volumes, suggesting a relatively lower level of market participation and activity.
The index has a support level at 18550, indicating a price level where buyers have shown interest and may provide a foundation for potential price rebounds.
On the other hand, there is a resistance level at 18660, acting as a barrier for upward movements and where sellers may become more active.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
