Now, it has to continue to hold above 19450 zones to extend the move towards fresh all-time high levels of 19600 and 19750 zones, while on the downside, support shifts higher to 19300 and 19250 zones, said Chandan Taparia of Motilal Oswal.
India VIX was down by 0.34% from 11.88 to 11.84 levels. Volatility near its lower band has supported the bulls at record-high zones.
Options data suggests a broader trading range between 19200 to 19700 zones, while an immediate trading range between 19350 to 19600 zones.
The hourly momentum indicator has a negative crossover which is a concern because, in the absence of support from the momentum indicator it may be unable to sustain at higher levels, chart readers said.
What should traders do? Here’s what analysts said:
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
Nifty reached the initial upside trajectory of 19500 levels, which is a 1.236% Fibonacci projection of weekly latest bottom-top-bottom swings. Hence, a sustainable move above this hurdle could pull Nifty towards another resistance of this projection at 19800 levels in the coming weeks. Immediate support is at 19400 levels.
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
Overall, the trending moves are resuming and slowly it is inching higher. We revise the target upwards to 19900. In terms of levels, 19300– 19270 shall act as a crucial support zone while 19650 – 19670 shall act as a crucial resistance zone.
As far as Bank Nifty is concerned, the index continued to trade within a range (45000 – 45660) for the third consecutive day. Overall, Nifty Bank is in consolidation mode after a sharp run-up. The hourly momentum indicator has a negative crossover and negative divergence, indicating a loss of momentum on the upside. Overall, the range of consolidation is likely to be 45000 – 45600.
Shrikant Chouhan, Head of Research (Retail), Kotak Securities
For trend-following traders now, 19375/65350 would be the sacrosanct support level. Above which the market could rally till 19575-19625/66000-66100. On the flip side, below 19375/65350 uptrend would be vulnerable. Below the same, we could see a quick intraday correction till 19325-19300/65150-65000.
Rupak De, Senior Technical analyst at LKP Securities
The overall trend appears positive as the index comfortably sits above a key short-term moving average (50-DMA). The immediate resistance is visible at 19500, a decisive breakout above 19500 may take the index towards 19725. Support on the lower end is pegged at 19350-19300.
(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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