As long as the sharp opening downside gap of Wednesday remains open at 21,970, there is a higher probability of a sell-on rise in the market for the short term. Immediate support is at 21,550 levels, said Nagaraj Shetti of HDFC Securities.
The hourly momentum indicator has reached the equilibrium line, indicating that the pullback is nearing completion.
The stock market will be open tomorrow but with a curtailed timing.
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What should traders do? Here’s what analysts said:
Ajit Mishra, SVP – Technical Research, Religare Broking
We reiterate our cautious view citing the prevailing underperformance of the banking and eyeing the 21,700-21,850 zone to act as a hurdle. Traders should continue a stock-specific approach and prefer hedged trades.Rupak De, LKP Securities
Nifty remained sideways throughout the session following a strong start. The index has moved back above the critical near-term moving average. In the short term, the index is likely to consolidate within the bands of 21,500 and 21,700. A decisive breakout on either side would confirm a directional move.
Sheersham Gupta, Rupeezy
The key highlight was Nifty’s close above the critical resistance level of 21,500. However, Nifty failed to close above its 20-day moving average (DMA), and bullishness in Nifty will return once 21,800 is crossed.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
