The short-term trend of Nifty continues to be weak. Having placed near the crucial lower supports, there is a possibility of minor upside bounce from near 19550 levels by next week. The anticipated upside bounce could be short-lived and the market is expected to reverse down from the lower highs. Immediate resistance is around 19800-19850 levels, said Nagaraj Shetti of HDFC Securities.
What should traders do? Here’s what analysts said:
Jatin Gedia, Sharekhan by BNP Paribas
Nifty is currently trading at a crucial support zone 19720 – 19620 where support parameters in the form of 40 moving average and key Fibonacci retracement level is placed. The speed of the fall has slowed down as the hourly momentum indicator has a positive crossover, which indicates that a pullback is likely before the next leg of the fall resumes. The pullback can be till 19850 – 19880 where key hourly moving averages and the gap area formed on 21st September is placed. In terms of levels, 19620 – 19604 is the crucial support zone while 19850 – 19880 shall act as an immediate hurdle zone.
Rupak De, Senior Technical analyst at LKP Securities
Nifty has now fallen below the critical 21-day Exponential Moving Average (21EMA). The sentiment appears bearish at this point, with a key support level identified at 19,600. A breach below 19,600 could potentially initiate a more significant market correction. On the upside, 19,800 is expected to serve as a resistance level.
Shrikant Chouhan, Head of Research (Retail), Kotak Securities
Due to temporary oversold conditions, we could expect a one quick pullback rally in the near future. For short-term traders now, the 50-day SMA (Simple Moving Average) 19600 and 19500 would be the key support zones while 19800 and 19900 could be key resistance areas. For Bank Nifty, the 50 day SMA or 45000 would be the sacrosanct support level. As long as its trading below the same, the weak sentiment is likely to continue. Below which, the index may slip till 44300-44000. On the flip side, a fresh uptrend is possible only after the dismissal of a 50 day SMA or 45000, above which it could move up till 45400-45500.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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