Nifty has taken support at its 50-DEMA but finding sustained supply near 24,350 zone. Now it requires a decisive range breakout above 24,350 or below 24,000 zones to commence the next leg of the rally but immediate structure is negative so sell on bounce could continue even if we are stuck in this trading range, said Motilal Oswal’s Chandan Taparia.
What should traders do? Here’s what analysts said:
Shrikant Chouhan, Kotak Securities
For day traders, intraday texture is non-directional hence level based trading would be the ideal strategy. For Nifty/ Sensex 24,100/78,800 and 24,250/79,300 are the important levels to watch out for. Above 24,250/79,300, the market could move up to 24,350-24,400/79,700-80,000. On the flip side, below 24,100/78,800 selling pressure is likely to accelerate. Below the same, it could slip till 24,000-23,925/78,500-78,250.Tejas Shah, Technical Research, JM Financial & BlinkX
Nifty is finding support around the 50-Day exponential Moving Average for the past couple of days, which is currently placed at 23,985 levels. Broadly, Nifty is trading in the range of 24,000 to 24,400 levels for the past couple of days and sellers are very strong near the upper end i. e. between 24,350 and 24,400 levels and buyers have repeatedly shown their presence near the lower end i. e. near 23,950 to 24,000 levels. We need to wait and watch for either side breakout or breakdown for further major direction in the Nifty. Support for the Nifty is now seen at 23,950-24,000 and 23,600 levels. On the higher side, immediate resistance for Nifty is at 24,200 levels and the next crucial resistance zone is at 24,400-500 levels.Jatin Gedia, Sharekhan
On the daily charts, the lower end (24,380) of the gap area formed on the 5th Aug continues to act as a stiff resistance. Pullback rallies towards the resistance levels are being sold into. The hourly momentum indicator has completed its pullback to the equilibrium line and started a new cycle on the downside. Thus, we can expect the weakness to continue. On the downside, 23900 is the crucial support and immediate target.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)