“The short-term trend of Nifty remains choppy. Some more consolidation movement or minor weakness is likely before showing a decisive upside breakout of the crucial overhead resistance around 19,850 levels in the short term. Immediate support is placed at 19,600 levels,” said Nagaraj Shetti of HDFC Securities.
What should traders do? Here’s what analysts said:
Rupak De, LKP Securities
Nifty stayed above the critical near-term moving average (21EMA), reinforcing the positive outlook. A hidden positive divergence on the daily chart indicates a potential bullish reversal in price momentum. Short-term prospects suggest a sideways to positive trend if the index stays above 18,550. A decisive move above 19,800 could drive the index toward the 20,000 mark.
Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas
On the daily charts, we can observe that the Nifty witnessed a bounce back from the 19,600 levels where the 20-day moving average is placed. The bounce is likely to fizzle out as there is an absence of support from the momentum indicator. Considering that the Nifty has closed in the negative today we need to complete a leg and the rise on the hourly charts appears overlapping, indicating it is not the start of a new leg of up-move.
The daily and hourly momentum indicators provide divergent signals which also suggest an absence of trending moves. Considering all the above parameters we shall continue to maintain that Nifty is likely to remain range bound between 19,500 – 20,000. Crucial support levels to keep handy are 19,630 – 19,600 and on the upside, 19,800 – 19,860 is the immediate hurdle zone.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)