“Now the index has to remain above 18,000 zones to maneuver upwards towards 18,188-18,300 zones, while the supports are at 17,950 and 17,888,” said Chandan
Option data suggested a wider range of fluctuation between 17,800 and 18,500 zones, while the immediate range of fluctuation between 17,900 and 18,300 zones. A negative crossover within the RSI suggests short-term weakness.
What should traders do? Here’s what the analysts said:
Manish Shah, freelance trader and trainer The larger trend in Nifty stays high. Nifty must break above 18,300-18,350 for the rally to proceed. The fundamental support is 17,900. A drop below 17,900 will see the Nifty fall below 17,700. Be prepared for some very uncertain price movement over the following few days.
Ruchit Jain, Lead Research, 5paisa.com Over the past few days, Nifty has consolidated within the 17,950-18,300 range, with the index recording buying interest within the 18,000-17,950 range. This is able to be seen as a brand or a hiatus within the near term and hence investors would watch this support closely.
Ajit Mishra, Vice President, Research, Brokerage That is the brand new norm as our markets begin to consolidate as global indices are under pressure. Moving on, it should be crucial for Nifty to have 17,800 to take care of a positive tone. Meanwhile, participants should use this phase so as to add stocks on downturns, focusing mainly on major indices and choosing mid-cap meters. Amongst sectors, we reiterate our preferences for banking and automotive, and suggest that others remain selective.
Gaurav Ratnaparkhi, head of technical research, Sharekhan by Despite many recent attempts, Nifty has not been in a position to stay above 18,200. The recent increase within the day by day index has not been accompanied by a rise within the day by day and hourly momentum indicators. Thus, the momentum indicators developed negative divergence, thus indicating an upward momentum depletion. In consequence, the index entered short-term consolidation. Overall, the index is anticipated to fall towards 17,800 within the short term. However, 18,100-18,120 will act as a short-term resistance zone.
(Disclaimer: Recommendations, suggestions, views and opinions of experts are their very own. They don’t represent the views of the Economic Times)