market outlook: Tech View: Nifty forms small green candle. What traders should do next week

Nifty, which has been finding support near its 50-day EMA for the last three consecutive days, on Friday ended 115 points higher and formed a small green candle with a long upper shadow on the daily chart.

A sustainable move above 19770 levels could bring bulls back into action. A slide below 19500 is expected to resume sharp selling momentum, said Nagaraj Shetti of HDFC Securities.

Both price and momentum indicators suggest that there can be positive momentum over the next few trading sessions.

Market would remain shut on Monday to mark Gandhi Jayanti and reopen for trading on Tuesday after the long weekend.

What should traders do? Here’s what analysts said:

Jatin Gedia, Sharekhan by BNP Paribas
On the daily charts, we can observe that Nifty has not witnessed follow-through selling pressure from the previous trading session. It managed to close above the 19600 zone, which is a positive sign. On the hourly charts, we can observe an Impulse i.e. a five-wave advance, which helps us assume that the low of 19492 is a short-term bottom in place. In terms of levels, 19500 – 19480 is the crucial support zone while 19780 – 19840 shall act as an immediate hurdle zone.

Rupak De, Senior Technical analyst at LKP Securities
Nifty needs to close above 19,750 to witness a decent rally over the short term. A close or sustained move above 19,750 might take Nifty on a ride towards 20,500-20,700. On the flip side, a fall below 19,470 might trigger the resumption of the downtrend.

Amol Athawale, Kotak Securities
Nifty formed a long-legged Doji formation, which may see trending activity on either side. Below 19490, the index could fall to 19400 or 19200 levels. On the other hand, above 19750, it would move to 19900-20000 levels. The real trend will emerge only if the index manages to cross the level of 20250. Regarding Bank Nifty, 44750 would be the crucial resistance level. As long as it trades below it, weak sentiment is likely to continue, and it may slip to 44100-43800 levels. Conversely, a new uptrend is possible only after the break of 44750, and it may rise to 45000-45200.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

(What’s moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)

Download The Economic Times News App to get Daily Market Updates & Live Business News.

Top Trending Stocks: Sensex Today Live, SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

FOLLOW US ON GOOGLE NEWS

Read original article here

Denial of responsibility! Secular Times is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – seculartimes.com. The content will be deleted within 24 hours.

Leave a Comment