Nifty has now moved towards hurdle area of previous huge opening downside gap of 5th Aug and the said down gap is expected to be filled soon around 24,700 levels. The next upside to be watched are around 24,700 and 25,000 in the near term. Immediate support is at 24,350 levels, said Nagaraj Shetti of HDFC Securities.
What should traders do? Here’s what analysts said:
Rupak De, Senior Technical Analyst, LKP SecuritiesNifty rallied above 24,500 after days of consolidating within a 400-500 point range. In the near term, the index may continue consolidating within the 24,300-24,550 range. Only a decisive move above 24,550 could trigger a directional up move in the index. A buy-on-dips strategy may be more effective unless Nifty decisively falls below 24,300.
Amol Athawale, Kotak Securities
For trend-following traders, 24,400/79,900 and 24,300/79,700 would act as key support zones. Above the same, the bullish formation is likely to continue. On the higher side 24,650/80,600 and 24,750/81,000 would be the key resistance areas for the bulls. However, below 24,300/79,700 uptrend would be vulnerable. For Bank Nifty it has formed double bottom reversal formation on daily charts, which is largely positive. 50,000 would be the sacrosanct support levels for the short term traders. on the higher side 20-day SMA or 50,900 and 51,200 would act as crucial resistance areas for the trend following traders.
Jatin Gedia, Sharekhan
On daily charts, we can observe that Nifty has held on to the 40-day average (24,150) and has witnessed a sharp pullback. The index is now heading towards the 24,626 – 24,650 zone where the 61.82% Fibonacci retracement level and the gap area formed on the 5th Aug is placed. Considering the sharp pullback, we change the short-term trend to sideways from negative and the range of consolidation is likely to be 2,400 – 24,200.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)