Nifty closes the October series with an Inside Bar. What traders should do on Friday?

As Nifty finished F&O’s monthly maturity 81 points higher, the headline index formed an Inside Bar on the daily scale. The hourly chart shows the index has been distributing below the main Fibonacci retracement at 17,800 for the past few sessions, analysts said.

After consolidating around the 17,800 zone for the last 3 sessions, any gain could lead the index towards the 18,000-18,200 zone.

“Structurally, the index is likely to trade sideways to bearish bias in the near term. As long as the Nifty stays below 17800 on a closing basis, it will likely test 17500 in the near term,” said Gaurav Ratnaparkhi, head of engineering research at Sharekhan.

.

What should traders do? Here’s what analysts said: Rupak De, Senior Technical Analyst at Nifty, has held it above the crucial moving average on the daily timeframe, confirming the uptrend. On the upside, the index may move towards 17,950. At the bottom, support is visible at 17,650/17,550.

Manish Shah, Independent Trader and Coach There are no signs of major selling pressure in Nifty. The index could trade in a range of 17,800-17,650 for another day or two, after which the rally should continue. On the upside, the big barrier is at 18,000-18,100.

Nifty should resume its upward trajectory once the minor resistance near 17,800 has faded. Avoid selling the market and buy on any dips up to 17,650-17,600. Stay long in a rising market.

Subash Gangadharan, Senior Technical and Derivative Analyst, Securities The short-term trend therefore continues to rise as the Nifty has risen above its previous swing high of 17,429 and has reached higher bottoms in recent weeks. The index also closed above a declining trendline that kept the 2021 and 2022 highs low.

The index could see a mild correction in the very near term. It is important for the Nifty to stay above the immediate support of 17,607-17,505 to continue the uptrend.

Ajit Mishra, VP – Research, Broking Consolidation in Nifty is progressing as expected and we recommend focusing more on sector/stock selection for now. Banking aside, sectors such as auto and selective pharma, real estate and metals are likely to do well for the foreseeable future. Participants must match their positions accordingly.

(Disclaimer: Recommendations, suggestions, views and opinions of the experts are their own. They do not represent the views of Economic Times)

Leave a Comment