Tech View: Nifty near term targets now increase to 26,000. Here’s how to trade on Monday

Based on this breakout, the index could advance towards 25,500 levels in the short term. If the index sustains above 25,500, Nifty could head towards the 26,000-26,250 levels, which is the target of the rounding bottom pattern, Hrishikesh Yedve, Asit C. Mehta Investment Interrmediates, said.

“On the downside, the 9-Day Exponential Moving Average (DEMA), positioned near 24,950, will act as immediate support for the Nifty in the short term. As long as the index remains above 24,950, a ‘buy on dips’ strategy should be adopted,” he said.

What should traders do? Here’s what analysts said:

Jatin Gedia, Technical Research Analyst at SharekhanSectoral rotation is helping Nifty to stay at elevated levels. Today it was IT and pharma indices which helped the index post healthy gains. We shall continue to ride the up move. On the upside, we expect Nifty to target levels of 25,500. On the downside, the crucial support base is placed at 25000 – 24900. We shall continue to ride the up move with a trailing stop loss mechanism.

Tejas Shah, Technical Research, JM Financial & BlinkX

The bulls are in full control of the markets at the current juncture and are using every dip to create long positions. Support for Nifty is now seen at 25,175-200 and 25,000-24,950 levels. On the higher side, immediate resistance for Nifty is at 25,250 level and the next crucial resistance zone is at 25,450-500 levels. Overall, more follow-up strength can be expected in today’s trading session.

Rupak De, LKP Securities

Market strength is likely to persist as long as the index stays above 25,000. A drop below this level could trigger a significant correction. On the upside, the current optimism could drive the index towards 25,500 in the near term.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)