The short-term trend of Nifty is down, but the near-term uptrend status of the market is intact. There is a possibility of some more weakness in the coming sessions down to 24,600-24,500 levels before showing any upside bounce from the lows. Immediate resistance is at 24,900 levels, said Nagaraj Shetti of HDFC Securities.
What should traders do? Here’s what analysts said:
Tejas Shah, Technical Research, JM Financial & BlinkX
Nifty is facing stiff resistance around the psychological level of 25,000 on an immediate basis and we believe that the index would further outperform only if it is able to decisively close above this resistance level or else the consolidation is likely to continue in the range of 24,500 to 25,000 levels. Support for the index is now seen at 24,700 and 24,450-500 levels. On the higher side, immediate psychological resistance for Nifty is at 25,000 and the next crucial resistance is at 25,250-300 levels. Overall, it would be interesting to see whether the follow-up selling occurs this week or not.
Rupak De, Senior Technical Analyst, LKP Securities
Nifty has slipped sharply amid a global sell-off. Technically, it has drifted down after forming a spinning top on the daily timeframe. The RSI indicator has turned downward, indicating a bearish crossover. The market appears to be favoring “sell on rise” traders as long as it remains below 24,800. On the downside, Nifty might drift towards 24,530 or 24,400.
Jatin Gedia, Sharekhan
We expect Nifty to retrace towards 24600 – 24550 where support in the form of 20 day moving average and 38.2% fibonacci retracement level is placed. On the upside, 24820 – 24850 is the immediate resistance.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)