On the daily chart, Nifty continues to hold above the 20 and 50-day SMA, which is a positive signal. The 14-day RSI at 67.5 is rising and not overbought, which is encouraging. “While we expect further upsides and new life highs in the coming sessions in the run-up to the election results, we remain open to volatile movements in the coming week. Crucial support to watch for resumption of weakness is at 22795-22630,” said Subash Gangadharan of HDFC Securities.
What should traders do? Here’s what analysts said:
Jatin Gedia, Sharekhan
We believe that this is just a brief pause in the overall up move. On the upside, Nifty has achieved our initial target of 23,000 and hence we raise it to 23,150 where the upper end of the rising channel is placed. One should place a trailing stop loss of 22,800 for long positions.
Tejas Shah, Technical Research, JM Financial & BlinkX
We expect an upwards trending activity to continue and the index should move towards the next resistance zone of 23,150-200 either continuously from current levels or may be after a minor dip. Support for Nifty is now seen at 22,750-800 & 22,500 levels. On the higher side, the psychological resistance is at 23,000 mark and the next resistance is at 23,150-200 levels. Overall, the indices could stay volatile but the trend and trajectory is still positive.
Rupak De, LKP Securities
Nifty remained sideways during the day after crossing above 23,000. Sentiment might remain subdued in the next few days, with the index ranging between 22,950 and 23,050. Heavy call and put writing activity at 23,000 suggests a possible range-bound trade in the near term. Only a decisive fall below 22,950 might take the index towards 22,800. On the other hand, a sustained movement above 23,050 might lead to a meaningful rally.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)