FPIs were seen covering their short positions on Friday because of which the FPIs’ Long-Short Ratio moved up from 39.46% on 17th August to 42.04%.
On the daily charts, we can observe that the index has been hovering around the 40-day moving average (19,360) for the past five trading sessions.
What should traders do? Here’s what analysts said:
Rupak De, Senior Technical analyst at LKP Securities
Nifty exhibited a positive tone as it maintained levels above the crucial support point of 19,250. A breach below this level could potentially spark unease within the market, causing concerns among investors. However, as long as the index holds above the 19,250 mark, there is a potential upward trajectory to the 19,500 level. A confident breakthrough above 19,500 has the potential to catalyze a sustained and substantial market rally.
Nagaraj Shetti, HDFC Securities
Although the index is placed at immediate support, there is a lack of strength observed in the upside bounces. Hence, such repeated testing of the supports without showing any significant upside bounces could eventually result in a decisive downside breakout of the said supports. Further upside from here could encounter strong hurdles around 19,500 levels.
Shrikant Chouhan, Head of Research (Retail), Kotak Securities
As long as the index is holding the 19,320 level, the bullish sentiment is likely to continue. Above which the index could rally till 19,475-19,500. On the flip side, below 19,320, the uptrend would be vulnerable and could slip to 19,250-19,225.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
