Last month, the index found support around 21,780 levels, and the 100-Days exponential moving average (DEMA) is placed near 21,820. Therefore, on the downside, 21,780-21,820 will act as the next key support for the index. On the upside, the 21-DEMA is positioned near 22,335, which will serve as a major hurdle, said Neeraj Sharma of Asit C. Mehta Investment Interrmediates.
What should traders do? Here’s what analysts said:
Rupak De, Senior Technical Analyst, LKP Securities
On the daily chart, the index has broken down from the rising channel, indicating a rise in bearish sentiment. The trend is likely to remain weak in the near term, with resistance noted at 22,200. As long as the Nifty remains below this level, a strategy of selling on rallies may be favourable for traders. Support at the lower end is situated at 21,950 on a sustained basis. A decisive drop below this level could trigger panic in the market.
Tejas Shah, Technical Research, JM Financial & BlinkX
We need to wait and watch till the high (22,131) or low (21,950) of Friday’s daily candle is taken out for further direction on Nifty in Friday’s trading session. Support for the index is now seen at 21,950-22,000 and 21,700-800 levels. On the higher side, the immediate resistance zone for Nifty is at 22,200-250 levels and the next resistance is at 22,500 Mark. Overall, the trend remains negative.
Jatin Gedia, Sharekhan
On the hourly charts, we can observe that Nifty has found support at the lower end of the rising channel. 21,900 – 21,950 has been defended. A follow-through buying is required to strengthen this support level. A pullback towards 22,140 – 22,250 is expected as the hourly momentum indicator has triggered a fresh positive crossover, which is a buy signal. The lower end of the channel, if breached, can lead to a sharp decline towards 21,270. So Nifty is at a crucial juncture.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
