For traders now, 21,725/72,000 would act as a key level to watch out for. “Below 21,725/72,000, the weak sentiment is likely to continue. Below the same, the market could retest the level of 21,500/71,100. Further down side may also continue, which could drag the index till 21,435/70,850. On the flip side, post 21,725/72,000 breakout, the index could rally till 21,800-21,835/72,300-72,400,” said Shrikant Chouhan of Kotak Securities.
What should traders do? Here’s what analysts said:
Sheersham Gupta, Rupeezy
It is a consolidation phase for the markets as Nifty has been trading in a narrow range of 21,500 to 21,800 for the past 10 sessions. 21,500 should provide a strong support for Nifty, which is substantiated by the option chain data.
The broader upside trend for the market is still intact and Nifty may soon see the level of 22,000 once the level of 21,800 is breached. However, intermittent volatility can not be ruled out as the results season kicks in.
Kunal Shah, senior technical & derivative analyst at LKP Securities
Selling pressure is evident within the 21,700-21,750 zone, and 21,500 stands out as a crucial support level for Nifty. Any significant directional movement for Nifty hinges on two possibilities — achieving a closing above 21,750 to reclaim bullish momentum, or experiencing a close below 21,500, which could prompt additional selling pressure and potentially pull the Nifty index toward the 21,200 mark.
Jatin Gedia, technical research analyst at Sharekhan
Amid the volatile price action, the Nifty is still within the broad range 21,850-21,500. On the way down, multiple support parameters in the form of the 20-day moving average ( 21,453) and 21,406 (50% fibonacci retracement level) shall provide cushion in case of a deeper correction.
(Subscribe to ETMarkets WhatsApp channel)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
