Tech View: Nifty forms long bull candle to end in uncharted zone. What traders should do next week

Nifty on Friday ended 135 points higher in uncharted territory above 20,250-zone to form a reasonable positive candle on the daily chart. On the weekly chart, a long bull candle was formed.

The short-term trend of Nifty continues to be positive, and one may expect further upside in the coming week. The next upside levels to be watched are around 20,510 (50% Fibonacci projection, taken from March 23 bottom-Sept 23 top-Oct 23 bottom). Immediate support is at 20140, said Nagaraj Shetti of HDFC Securities.

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

Rupak De, LKP Securities
Nifty continues to ascend as the bulls maintain control. A consolidation breakout on the weekly time frame seems probable, paving the way for a further rally in the index. The sentiment remains upbeat, marked by a bullish crossover in the weekly RSI. At the lower end, support stands firm at 20,200; any declines could be seen as buying opportunities as long as it holds above this level. On the higher end, resistance is anticipated around 20,450-20,500.

Shrey Jain, Founder and CEO SAS Online
Data signals a potential rally for Nifty, projecting an upward move to 20,600 in the coming sessions, with a robust support level at 20,150. However, there might be a pause in case of unfavorable election results. The overall trend remains positive, painting an optimistic picture for the market.

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(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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