The underlying trend of Nifty continues to be positive. There is a possibility of an upside breakout hurdle around 24,400-24,500 levels in next few sessions. Immediate support is placed at the 24,170 level, said Nagaraj Shetti of HDFC Securities.
What should traders do? Here’s what analysts said:
Rupak De, LKP Securities
The index started with a gap down. However, after the initial weakness, put writers returned heavily. The 24,200 level witnessed heavy writing on the put side, marking a short-term support for Nifty. The last-hour spike in Nifty shows resilience of the bullish trend. This strength is likely to prevail in the market until it breaks below 24,200 decisively. A fall below 24,200 might induce profit-booking in the market.
Om Mehra, SAMCO Securities
The sharp rise in the final hours indicated that bulls magnificently prevented a breakdown of the rising trendline with support at 24,200 on the hourly chart. The 23.6% Fibonacci retracement level at 24,150 will act as immediate support. Surpassing the all-time high of 24,401 would push the index toward the 24,520-24,550 range.
Jatin Gedia, Sharekhan
On the daily charts, we can observe that Nifty has faced resistance from the zone of 24,370 – 24,500. The loss of momentum was visible on the hourly charts as a negative divergence was developing and it played out on Friday. Bollinger bands on the hourly charts suggest contraction and hence we are expecting range-bound price action over the next few trading sessions. Going ahead, we expect Nifty to trade in the range of 24,100-24,400.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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