As far as levels are concerned, 19400-19300 is likely to cushion any short-term blip, while the sacrosanct support lies around the bullish gap of 19200. The next pitstop could be seen around 19650-19700 on an immediate basis, said Osho Krishan of Angel One.
For the week, Nifty was up by 1.2%, and it is the third weekly rise on the trot. Nifty Bank, which underperformed for the entire week, registered a sharp recovery in the last 45 minutes of the trade.
What should traders do? Here’s what analysts said:
Rahul K Ghose, Founder & CEO – Hedged
Nifty saw short covering in the 19500 calls propelling the markets up in the last hour. The base of the index has now shifted to 19200 from the older 19000 level. Bank Nifty is the index to watch out for in the coming week. Bank Nifty has closed with a bullish hammer candle right on its 20-day exponential moving average and has taken support at this average. Today’s move will be the start of Bank Nifty’s momentum, making it cross its near term hurdle of 45200 in the coming week.
Rupak De, Senior Technical analyst at LKP Securities
Nifty index’s break above the consolidation range of 19300-19500 suggests increasing optimism in the market. The resistance at 19500, which was heavily built by Call writers, has been surpassed on a closing basis. This breakthrough is expected to lead to a significant rally as the Call writers unwind their positions. The bullish crossover on the momentum indicator RSI reinforces the upward momentum. The Nifty may potentially reach levels around 19700-19720, but it’s important to consider the short-term support at 19300.Nagaraj Shetti, Technical Research Analyst, HDFC Securities
Having moved above the crucial resistance of 19500 (1.236% Fibonacci projection of weekly taken from recent bottom-top bottom). As per this pattern, the next upside target to be watched is around 1.382% Fibonacci projection at 19800 levels, which is expected to be a next upside target for the Nifty for the coming week. Immediate support is at 19470 levels.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)