This week was marked by consolidation as prices remained range-bound after Monday’s gap-up, Rajesh Bhosale, Equity Technical Analyst at Angel One said. Decoding the daily chart, he said that a defined range has emerged with the support base shifting higher to the 24,000–23,900 zone while on the flip side, the 50 DEMA and 89 DEMA continue to act as a formidable resistance around the 24,350–24,400 zone.
What should traders do? Here’s what analysts said:
Jateen Trivedi, LKP SecuritiesFollowing a positive morning session, the Nifty moved sideways in the afternoon, trading mostly within the 24,050-24,150 range. The sentiment appears slightly improved as the index held above 23,870. Going forward, the trend might remain sideways to positive in the short term, provided it stays above 23,870. On the higher end, resistance is observed at 24,400-24,500.
Jatin Gedia, Mirae Asset Sharekhan
Nifty opened on a flat note and witnessed a recovery after the steep decline in the previous trading session closing with a gain of ~217 points. On the daily charts we can observe that the Nifty did not witness follow through selling pressure from the previous trading session and in fact regained most of the lost ground. Both daily and hourly momentum indicators are now in sync. Thus, both price and momentum indicators point towards continuation of the upward move towards 24,400. On the downside 23800 is the crucial support zone.
Hrishikesh Yedve, Asit C. Mehta Investment Intermediates
Nifty opened flat, experienced considerable buying demand, and concluded the day on a high note around 24,131 levels. The volatility index India Vix cooled off by 5.12% to 14.43, indicating a drop in market volatility.
Technically, on a daily chart, the Nifty has reclaimed the support of 21-Days exponential moving average (DEMA) and formed a green candle, which indicates strength. On the upside, the index will find immediate hurdles near 24,350-24,360 levels. The 21-DEMA is placed near 24,080, which will act as immediate support for the index followed by 23,570, where the 200-Days exponential moving average (DEMA) support is placed. As long as the index persists below 24,360, traders should focus on booking profits on bounce and wait for fresh breakout.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)