The underlying trend of Nifty has been bearish with a positive bias. A further bounce from here could push the Nifty towards 25,000-25,100 levels in the near term. Immediate support is at 24,650, said Nagaraj Shetty of HDFC Securities.
On the weekly chart, a reasonably positive candlestick with a small lower shadow was seen. On the weekly chart, the previous week’s significant down gap resistance at the 24,700 level has been completely filled and the market has closed above it, he said.
What should traders do? Here’s what analysts had to say:
Amol Athavale, VP-Technical Research, Kotak Securities
Technically, 24,700/80,800 and 20-day SMA or 24,550/80,300 will be key support zones while 24,900-25,000 / 81,500-81,900 can act as critical resistance zones for traders. However, the 20-day SMA below or 24,550/80,300 will be susceptible to an uptrend. The 20-day SMA or 50,700 for the Bank Nifty will be an immediate reference point for the bulls. As long as it trades above par, the bullish sentiment is likely to continue. On the upside, it could move up to the 50-day SMA or 51,500. Further upside may also continue which could push the index to 51,800. On the flip side, below 50,700 it may retest the 50,250-50,000 levels.
Rupak De, LKP Securities
Nifty experienced yet another day of disappointing movement. The RSI shows a bullish crossover, and the trend remains positive as it closed above the 21 EMA. The market seems to favor a “buy on dips” strategy while holding above 24,650. On the upside, Nifty faces resistance at 24,850-24,900/25,000. On the downside, the index could see a significant correction if it breaks below 24,650.
Osho Krishna, Angel One
Active participation of mid and small-cap stocks as well as heavyweights and banking sectors have established a strong foundation and boosted market sentiment. The dominance of bullish investors was evident throughout, with their strong advance-decline ratio helping the Nifty index close the bearish gap on the weekly timeframe. Although replicating the same next week and conquering another bearish gap on the daily chart around the 24,850-24,950 subzone will be a challenging task, it will require prudence rather than complacency. And once the levels are conquered, we can witness another lifetime high field in the benchmark. At the lower end, the support zone has increased, starting at 24,750-24,700, starting at 24,650-24,600, with bulls expecting a good rally.
(Disclaimer: Recommendations, suggestions, opinions and views given by experts are their own. These do not represent the views of Economic Times)
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