In the case of a dip towards, 22,390 – 22,340 it should be used as a buying opportunity as key hourly moving averages are placed in this range and can attract buying interest. On the upside, 22,570 – 22,600 shall act as an immediate hurdle zone from a short-term perspective, said Jatin Gedia of Sharekhan.
The short-term moving averages are just below the price action and should continue to support the indices on any decline, chartists said.
The markets would be shut on Friday to mark the festival of Mahashivratri.
What should traders do? Here’s what analysts said:
Tejas Shah, JM Financial & BlinkX
Nifty tested the upper band of our target zone of 22,450-22,500. 22,250 and 22,000 are the important supports and till they remain intact, all dips should be bought into anticipating an eventual move into 23,000-23,100 levels on the higher side. Support for the Nifty is now seen at 22,425 and 22,250-300 levels. On the higher side, immediate resistance for Nifty is at 22,500-525 levels and the next resistance is at 22,700 Mark.
Osho Krishan, Angel One
From a technical standpoint, the index has managed to hold the higher ground and dips augured well for the bulls, but the range is narrowing down as we head into uncharted territory, which might be a sign of caution for the coming period. For now, 22,250-22,200 is likely to be seen as intermediate support, followed by the strong support of 22,150 and finally, the psychological mark of 22,000 from a broader term view. On the higher end, finding resilience is challenging in uncharted territory, though 22,600-22,650 could be seen as the following potent targets for Nifty in the upcoming week.
Shrikant Chouhan, Kotak Securities
On daily and intraday charts, the market is holding higher, high, and higher low formation, and on weekly charts, the Nifty/Sensex has formed a breakout continuation formation, which is largely positive. For the positional traders now, 22,200/73,300 or 20-day SMA (Simple Moving Average) would act as a trend decider level. Above 22,200/73,300, the market could move up to 22,650-22,800/74,500-74800. On the flip side, below 22200/73300 the sentiment could change. Below 22200/73300, the market could slip till 22100/73000. Further downside may also continue which could drag the index to 21950/72650.
Rupak De, Senior Technical Analyst, LKP Securities
Nifty stayed below the psychological 22,500 mark, with call writers at the 22,500 strikes significantly increasing their positions. On the downside, support is expected to hold at 22,400. The buy-on-dips strategy is likely to persist as long as it remains above 22,400. On the upside, a decisive move above 22,500 could trigger buying interest in the market, potentially pushing the index towards 22,700 in the short term.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)