After swinging between gains and losses, the 50-stock Nifty settled at 18315.10 points, up 49.15 points or 0.3% higher from the previous close.
On the technical front, a long-legged doji-type candle pattern was formed on the daily chart, placed amid range movement.
Normally, formation of such a doji pattern at the highs post reasonable upside calls for caution for bulls at the hurdles. But, having formed this pattern within a range movement, the predictive value of this pattern could be less, said Nagaraj Shetti, technical analyst, HDFC Securities.
“Though, Nifty paced at the strong overhead resistance of 18,250-18,300 levels, there is no indication of any reversal pattern unfolding at the highs,” Shetti said.
A decisive move above 18,300-18,400 levels could open the next upside target of around 18,600-18,700 levels in the near term.
Here’s a summary of the views from other technical chartists:
Rupak De, Senior Technical Analyst, LKP Securities:
The Nifty experienced a period of volatility, trading in a range of 18,211 and 11,326 before closing in positive territory. The next strong resistance level for the Nifty is expected to be in the range of 18,400 to 18,500.
However, the overall trend remains positive, indicating that there is an overall upward bias in the market. Therefore, despite potential resistance levels, the market is still expected to move in an upward direction as long as it sustains above 18,200.
Osho Krishan, Senior Analyst – Technical & Derivatives, Angel One
Technically speaking, the market seemed to be a bit timid as a strong follow up buying is missing at the current juncture.
However, the chart structure remains robust as the index is firmly withheld to the upper band of the consolidation zone.
As far as levels are concerned, the 18,250-18,200 zone is expected to cushion any short-term blip, while the sacrosanct support lies around the 18,100-18,000 mark. On the flip side, the 18,500 is very much in the vicinity and is highly anticipated to be tested soon.
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
On the daily charts, the Nifty is still hovering around the upper boundary (18,350) of the broad trading range (18,000 – 18,350) and both bulls and bears are trying hard to defend their respective boundaries.
On the way down 18,220 – 18,200 is acting as a crucial support zone while 18,330 – 18,350 is acting as an immediate hurdle and the Nifty is witnessing volatile trade within this range.
Until we get a decisive close beyond the extremes of this range the sideways price action is likely to continue.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)