While the MACD indicator remains in a buy mode, the headline stock index Nifty formed a strong bearish candle and a bearish engulfed pattern on a daily scale, limiting upward momentum.
Analysts said the index’s moving averages also started inches higher.
“Now it should be above 17,580 zones for an upward move to 17,777 and 17850 zones, while placing supports in 17,580 and 17,442 zones,” Chandan said.
Options data suggests a trading range between 17,450 and 17,800 zones.
What should traders do? Here’s what analysts said:
Rupak De, Senior Technical Analyst at Throughout the day, the Nifty remained above its previous level of consolidation, signaling growing optimism. In the short term, the trend is expected to remain strong. On the upside, resistance is visible at 17,950. On the downside, support has been placed at 17,550/17,400.
Deepak Jasani, Head of Retail Research, SecuritiesNifty is experiencing a slight pullback after the recent surge. 17,778-17,811 could be resistance for the Nifty in the near term, while 17,568-17,584 could provide band support.
Manish Shah, Independent Trader and Coach The bigger trend since the last three months has been sideways between 18,100-16,800. As such, the main barrier to Nifty is at 18,100. If Nifty moves above 18,100, expect it to rally quickly from then on.
Ajit Mishra, VP – Research, Broking While global markets are still not showing a clear trend, recent heavyweight purchases, especially the banking package, have revived sentiment. We may see some consolidation in the index ahead, but the tone is likely to remain positive. The focus should remain on identifying stocks from the sectors participating in the move, without losing focus on risk management, citing volatile global markets and the prevailing earnings season.
(Disclaimer: Recommendations, suggestions, views and opinions of the experts are their own. They do not represent the views of Economic Times)