The momentum oscillator RSI (14) on the daily chart has taken support near 55 levels and shown a strong reversal with a bullish crossover on the cards.
As long as Nifty’s 18213 support is held, expect the index to bounce towards its psychological hurdle at the 18,500 mark and then aggressive targets at its all-time high at 18,888 mark, said Prashanth Tapse of Mehta Equities.
What should traders do? Here’s what analysts said:
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Nifty cleared the short-term resistance of 18,400 but intraday profit booking at higher levels saw it close below 18,400. For trend-following traders now, 18300 would act as a sacrosanct support zone, and above the same the positive momentum is likely to continue. Above this, the index could retest the level of 18,450. Further upside may also continue which could lift the index to 18,550. On the flip side, below 18,300, the uptrend would be vulnerable and below the same, we may see a quick correction till 18,200-18,150.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The underlying short-term trend of Nifty continues to be positive. The market is still facing hurdles around 18,400 levels and the intraday weakness is emerging from the highs. Any dips could be a buying opportunity around 18,280-18,200 levels. A sharp upside above 18,400 could open further up and move towards 18,600-18,800 levels in the near term.
Rupak De, Senior Technical Analyst at LKP Securities
Nifty encountered resistance at a historical congestion area on the daily chart, indicating a potential hurdle for further upward movement. However, it managed to close above the support level of 18300, which is a positive sign. The heavy unwinding in the 18300CE along with decent addition in the 18300PE suggests that the support at 18300 is robust. In the short term, the index is expected to move towards 18500 and potentially higher. The support level to watch out for remains at 18300.
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
On the upside, we expect the Nifty to reach levels of 18,500 and hence we change our outlook to positive from sideways. In terms of levels, 18,500 – 18,520 is the immediate hurdle while 18,190 – 18,220 shall act as a crucial support zone and until this support zone is held, we can expect the dips to be bought into and the positive momentum to continue.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
