Technically, the uptrend remains intact but the RSI on the hourly chart is indicating the possibility of a pullback move or a consolidation within an uptrend, say analysts.
Having moved up sharply Nifty is currently facing hurdles at the resistance of 24,000-24,100 levels. Any dip from here is likely to be a buying opportunity. Immediate support is at 23,800 levels, said Nagaraj Shetti of HDFC Securities.
What should traders do? Here’s what analysts said:
Rupak De, LKP Securities
The sentiment continues to remain strong as the index closed significantly above the critical moving average. However, after a continuous rally, the index looks a bit heavy and might attract profit booking if Nifty sustains below 24,000. On the lower end, the index might fall towards 23,850/23,700 in the short term upon a decisive fall below 24,000. On the higher end, resistance is visible at 24,200.
Tejas Shah, JM Financial & BlinkX
Some technical indicators are in overbought territory on the short term charts i.e. hourly charts that could lead to knee-jerk reactions, from time to time. The bulls are in full control of the markets at the current juncture and are using every intraday correction to create long positions. The short term moving averages are below the price action and should continue to support the indices on any decline. Support for Nifty is now seen at 24,000 and 23,750-800 levels. On the higher side, immediate resistance for Nifty is at 24,125 level and the next resistance is at 24,300 level.
Om Mehra, SAMCO Securities
The index reversed from the 2.618% Fibonacci retracement, which is near the 24,180 level. In the daily time frame, Nifty has formed a bearish inverted hammer. In the hourly chart, the 23.6% Fibonacci retracement level remains at 24,000. If this level is violated, it may extend to 23,850.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)