Broadly, Nifty is still trading in the range of 24,000 to 24,400 levels for the past few days and we need to wait and watch for either side breakout or breakdown for further major direction in Nifty. Support for the index is now seen at 24,200 and 23,950-24,000 levels. On the higher side, the immediate resistance zone for Nifty is at 24,350-400 levels and the next resistance is at 24,550 levels, Tejas Shah, Technical Research, JM Financial & BlinkX, said.
What should traders do? Here’s what analysts said:
Hrishikesh Yedve, Asit C. Mehta Investment Interrmediates
If the index sustains above 24,480, it could trigger a fresh rally toward the 24,600-24,700 levels. Therefore, a buy-on-dips strategy should be adopted for Nifty. On the downside, support from the 34-day Exponential Moving Average (DEMA) is near 24,240, making the 24,200-24,240 range a key support zone for Nifty in the short term.
Rupak De, Senior Technical Analyst, LKP Securities
The sentiment is sideways to weak, with the index closing below the 21-day EMA. The RSI is in a bearish crossover, indicating weak momentum. The market might continue to be a sell-on-rise as long as it stays below 24,500. On the lower end, support is placed at 24,150.Jatin Gedia, Sharekhan
On the daily charts, we can observe that Nifty has been in a counter-trend pullback after a decline of 1,200 points. On the upside, the retracement can occur till 24,520 – 24,650 where the 50% and 61.82% Fibonacci retracement levels of the fall are placed. The immediate support on the downside is placed at 24,210.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
