The previous closure around 21,800 is likely to be seen as the pitstop for bears, and if bulls could not barge on there, we may test the 100 DEMA placed around 21,600 on an immediate basis, said Osho Krishan of Angel One.
On the flipside, a series of resistance could be seen from 22,150-22,200, followed by the 20 DEMA at 22,300 zone. The undertone certainly favours the bears now and any rise should be seen as an opportunity to either exit longs or to look for bearish bets in the index, the analyst said.
What should traders do? Here’s what analysts said:
Jatin Gedia, Sharekhan
On the daily charts, we can observe that the Nifty faced resistance at 22,300 – 22,320 zone where the key hourly moving averages were placed. On the downside, the Nifty is now approaching the lower end of the rising channel and the 78.6% Fibonacci retracement level 22,000 – 21,938. It shall be a crucial level to watch out for during the next few trading sessions. Divergence on the hourly time frame charts suggests that there could be a pullback over the next few trading sessions. However, we shall await price confirmation.
Tejas Shah, JM Financial & BlinkX
Technically, the evidence continues to suggest that the markets are likely to remain under pressure in the near term. Presently, the bears are in full control of the markets and are using every pull back rally to create short positions. Support for Nifty is now seen at 21,950 and 21,700. On the higher side, the immediate resistance zone for Nifty is at 22,150-175 levels and the next resistance is at 22,300 mark. Overall, Thursday’s weekly closing above or below the psychological support of 22,000 will give direction for the coming week.
Rupak De, LKP Securities
On the hourly chart, the index has formed a bullish Harami pattern, suggesting a potential bullish reversal in the near term. Additionally, a bullish divergence is evident on the hourly chart. Looking ahead, the index might advance towards 22,200/22,300; sustained trading above 22,300 could further strengthen the market. Support is situated at 21,900.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)