Nifty is now trading above its 50 and 200-day SMA (Simple Moving Average) and on intraday charts it is holding a higher bottom formation, largely positive.
However, chartists point out that momentum indicators are hinting at temporary overbought conditions and due to this we could see range bound activity in the near future.
The overall chart pattern of Nifty continues to be positive. The next upside targets to be watched are around 18,200 levels in the coming weeks. Immediate support is at 17,700 levels, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
The market is shut tomorrow to mark Ambedkar Jayanti.
What should traders do next week? Here’s what analysts said:
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
For bulls now, 17,700-17,600 would be the key support areas, while 17,900-18,000 would act as a crucial resistance zone for traders. Meanwhile, positive sentiment is likely to continue in Nifty Bank and for trend following traders now 41,500 would be the sacrosanct support zone. Above which, it could move up till 42,500-42,700. On the flip side, below 41,500, the uptrend would be vulnerable.Rupak De, Senior Technical Analyst at LKP Securities
The critical moving averages are sitting comfortably below the current index value. The trend is likely to remain positive as long as it stays above 17,700. On the higher end, 18,000 will likely act as crucial resistance.
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
Considering the sharp run-up in the previous nine trading sessions, a consolidation is highly probable. However, it should be considered as a buying opportunity. In terms of levels, 17,860 – 17,900 is the immediate hurdle, while 17,730 – 17,700 shall act as a crucial support from a short term perspective.
On the upside, we expect Nifty to target levels of 18,000.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
