The underlying trend of the index remains positive. Further consolidation or minor dip from here is likely to create space for a decisive upside breakout of the hurdle at 25,100 level. A sustainable upside breakout from here could open the upside target of 25,360 levels in the near term as per Fibonacci extension. Immediate support is placed around 24,800-24,750 levels, said Nagaraj Shetti of HDFC Securities.
What should traders do? Here’s what analysts said:
Hrishikesh Yedve, Asit C. Mehta Investment Interrmediates
Traders are advised to take some profit out of the table. If the index sustains above the 25,130 levels, then this pattern will be negated and the rally could extend towards the 25,300-25,500 levels. On the downside, the 9-Day Exponential Moving Average (DEMA), positioned near 24,820, will act as immediate support for the Nifty in the short term.
Tejas Shah, Technical Research, JM Financial & BlinkX
Nifty is facing stiff resistance around the crucial area of 25,075-100 levels for the past few days and we believe that Nifty will further outperform only if it is able to decisively close above this resistance zone or else profit-booking is likely from the current levels. The short-term moving averages are just below the price action and should continue to support the indices on every decline. Support for the index is now seen at 25,000-24,950 and 24,850 levels. On the higher side, the immediate resistance for Nifty is at 25,078 level and the next resistance zone is at 25,200-250 levels. Overall, Nifty is likely to remain volatile within 24,750–25,250 range in the near term.
Jatin Gedia, Technical Research Analyst at Sharekhan
The up move can continue and a dip towards 24.920-24,850, where the key hourly moving averages are placed, is likely to act as a crucial support zone. On the upside, 25,200 – 25,250 is the immediate hurdle zone.
Rupak De, LKP Securities
A decisive move above 25,100, or a close above this level, could confirm a further rally in the market. Otherwise, Nifty may slip lower, as the absence of sustained buying might trigger selling pressure. The immediate support is placed at 24,800.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)