The short-term trend of Nifty seems to have reversed from all-time highs. The formation of candle patterns as per daily and weekly charts indicate possibility of more weakness in the market ahead.
The next lower supports to be watched are around 24,200 and 24,000 levels. Immediate resistance is at 24,850 levels, said Nagaraj Shetti of HDFC Securities.
What should traders do? Here’s what analysts said:
Amol Athawale, Kotak Securities
The current market texture is non-directional and volatile. Hence, level-based trading would be the ideal strategy for traders. 24,500/80,400 and 24,350/80,000 would act as a key support zone for bulls while 24,850-25,000 / 81,600-82,000 could be key resistance areas for traders. However, below 24,350/80,000 the sentiment could change.
Below the same, positional traders may prefer to exit out from trading long positions. For Bank Nifty now, 25-day SMA (Simple Moving Average) and 51,750 are immediate support zones while 52,800 and 53,200 would be the immediate resistance areas for positional traders.
Osho Krishan, Angel One
As far as levels are concerned, a sustainable plunge below 24,500 is likely to provide some more respite to the benchmark for a potential downside to 24,300-24,200 (20-DEMA) on an intermediate basis, while the sacrosanct support lies at 24,000 mark. The trading range is highly anticipated to broaden amidst the Budget week, and hence, proper risk management is warranted for participants. Furthermore, while looking at elevated parameters and rising volatility caution is recommended. On the contrary, the record high of 24,800-24,850, now could be seen as a daunting task for the Bulls in the comparable period.
Jatin Gedia, Sharekhan
On the daily charts, we can observe that Nifty has faced resistance at the zone of 24,850 – 24,900 where Fibonacci levels were placed. The negative divergence and crossover on the momentum indicator indicates that the weakness can continue. Thus, there can be consolidation in the near term ahead of the key economic event.
In terms of levels, 24,400 – 24,350 is the crucial support zone while 24730 – 24780 shall act as a crucial resistance from a short-term perspective.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
