Having reached near the overhead resistance of around 24,400 levels (1.618% Fibonacci Extension), the market could shift into further consolidations/range bound movement in the short term before showing further up move in the near term. A decisive move above 24,400 levels could open the next upside target of 24,900 levels (1.786% Fib. Extension) in the coming week. Immediate support is placed at 24,110 levels, said Nagaraj Shetti of HDFC Securities.
What should traders do? Here’s what analysts said:
Rupak De, LKP Securities
Bulls have regained control from bears, pushing the index above 24,300. This shift in sentiment has once again favored long trades in the market. Moving forward, the trend might remain strong in the near term as long as it stays above 24,000. On the higher end, the index might move towards 24,500. However, a fall below 24,000 could lead the index into consolidation.
Jatin Gedia, Sharekhan
On the daily charts we can observe that the Nifty has broken out of a sideways consolidation on the upside and is now heading towards 24,370 – 24,500 zone. Trailing stop loss for long positions should be maintained at 24,050. A negative divergence on the hourly time frame is a cause of concern. However till prices don’t show decisive weakness we shall continue to ride the up move.
Tejas Shah, JM Financial & BlinkX
As long as Nifty is holding above 24,000, we believe that the rally is likely to continue and it can test the next resistance level of 24,500 on the higher side. Any minor dip towards 24,150-24,200 levels will offer a favourable risk reward for going long. The bulls are in full control of the markets at the current juncture and are using every intraday correction to create long positions. The short term moving averages are below the price action and should continue to support the indices on any decline. Support for Nifty is now seen at 24,200 and 23,975-24,000 levels. On the higher side, immediate resistance for Nifty is at 24,300 level and the next crucial resistance is at 24,500. Overall, all dips should be used as an opportunity to buy.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
