The daily and hourly momentum indicator has a negative crossover and thus the pullbacks are likely to be sold into.
What should traders do? Here’s what analysts said:
Rupak De, Senior Technical analyst at LKP Securities
Nifty remained under bear grip as selling pressure emerged around the day’s high, resulting in a decline below 19,500. On the upper side, resistance is expected to persist in the range of 19450-19500. A definitive breakout or a closing above 19500 could potentially trigger a rally in the index. On the lower side, there is immediate support at 19300, a drop below this level might lead to panic in the market.
Jatin Gedia, Sharekhan
On the daily charts, we can observe that the pullback rally has fizzled out around the resistance zone of 19500 – 19550 where multiple resistance in the form of the 20-day moving average and the 38.2% Fibonacci retracement level (19538) of the fall from 19992 – 19253 was placed. Overall, we shall continue to maintain our negative outlook on the index for targets of 19100. Crucial support is placed at 19280 – 19250 while immediate hurdle is placed at 19500 – 19530.
Shrikant Chouhan, Head of Research (Retail), Kotak Securities
For bulls, 19470 would act as an immediate resistance zone, and if the index is trading below the same, the weak sentiment is likely to continue and could retest the level of 19325-19300. On the flip side, post 19500 breakout the market could rally till 19600-19625.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)