Suggesting a bullish momentum in the index that could take it to fresh peaks, Nifty on Tuesday ended 158 points higher and formed a hammer candlestick pattern on the daily charts.
Minor positive patterns like higher tops and bottoms are intact and the market is now on the way up toward the new higher top formation at new all-time highs. The crucial opening downside gap of 17th Jan is now placed on the verge of a decisive upside breakout at 21,970 levels. Immediate support is at 21,750 and the next overhead resistance is to be watched at around 22,125 levels, said Nagaraj Shetti of HDFC Securities.
On the derivative front, 21900PE added the highest open interest, followed by 21800PE, indicating immediate support.
What should traders do? Here’s what analysts said:
Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas
The daily and the hourly momentum indicators have a positive crossover which is a buy signal. Thus, both price and momentum indicators suggest the continuation of the positive momentum. However, considering the recent sharp reversals from the upper boundary (22000) one needs to be cautious on the long side. Stock-specific action and sector rotation are likely to continue during this period of consolidation. Key support levels are 21,730 – 21,700, while the immediate hurdle zone is placed at 22,100-22,130.
Rupak De, LKP Securities
Nifty exhibited a predominantly sideways trend throughout the day, with traders expressing uncertainty regarding the market’s direction. A range-bound movement is expected to persist until a breakout occurs on either side. A decisive upward move beyond 21,950 has the potential to propel the Nifty towards 22,200. Conversely, a decline below 21,850 could instigate a correction towards the 21,700 level.
Osho Krishan, Angel One
The chart structure construes a range-bound activity to continue, with a strong nearby resistance at the 22,000 mark, followed by 22,100. And a decisive breakthrough could only trigger the next leg of the rally in the Nifty50 index. On the contrary, 21,800-21,750 remains the intermediate support, while the 20-DEMA placed around 21,650 is to be seen as a sacrosanct support zone for the comparable period.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
(You can now subscribe to our ETMarkets WhatsApp channel)
(What’s moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Download The Economic Times News App to get Daily Market Updates & Live Business News.
Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price