The short-term trend of Nifty continues to be positive. Having placed at the key overhead resistance around 24,700, there is a possibility of some more consolidation or minor dip in the next 1-2 sessions, before showing another round of upside breakout.
Immediate supports to be watched at 24,400 levels, said Nagaraj Shetti of HDFC Securities.
What should traders do? Here’s what analysts said:
Osho Krishan, Senior Analyst – Technical & Derivatives, Angel OneThe market breadth clearly favoured bulls with their dominant performance in the Advance-Decline ratio reflecting a robust market undertone. However, the benchmark index stayed in a slender range, hovering within the bearish gap on the daily time frame chart. A decisive breakthrough is expected to have a significant impact on the momentum, providing a clearer picture of potential future market movements.
It is anticipated that 24,700 will serve as the next important resistance for Nifty, followed by 24,800-24,850. Additionally, the 20-day EMA positioned around the 24,390 zone is projected to act as a supportive barrier, helping to mitigate any minor blips in the comparable period.
Tejas Shah, JM Financial & BlinkX
The technical structure of Nifty is relatively stronger than Bank Nifty. The Nifty index also closed above the crucial resistance zone of 24,350-400 for two consecutive days, which is a positive sign. Support for the Nifty is now seen at 24,500 and 24,350-24,400 levels. On the higher side, immediate resistance for Nifty is at 24,700 mark and the next resistance is at 24,850 levels.
Devarsh Vakil, Deputy Head Retail Research, HDFC Securities
Nifty has retraced more than 50% of the entire fall witnessed from all-time high of 25,078 to the recent swing low 23,893. Nifty has also reclaimed levels above its 20-DEMA, placed at 24,390 odd levels. The downward gap formed on 5th August between 24,686 and 24,350 is partially filled now. For negating the entire gap resistance, Nifty needs to close above 24,686 level. The band of 24,470-24,500 could offer support to Nifty in the coming sessions. A close above 24,686, could propel the Nifty index towards new all-time highs.
Jatin Gedia, Sharekhan
On the daily charts we can observe that Nifty is consolidating around the 24,620 – 24,650 zone, which coincides with the 61.82% Fibonacci retracement level and also the upper end of the gap area formed on the 5th Aug. We believe that Nifty is in the process of filling the gap area. On the upside, 24,650 – 24,700 is the immediate hurdle zone while 24,390 – 24,350 is the immediate support zone. Overall, we expect a range-bound movement in the Nifty within the range 24,800 – 24,200 from a short-term perspective.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)