nifty50: Tech View: Nifty trading near 50-DMA. What traders should do on Friday

NEW DELHI: Nifty on Thursday ended 46 points lower to form a small green candle with an upper shadow on the daily chart and signalled buying interest at lower levels. Put writers were seen strengthening their position at 19,500 strike.

If the index weakens further, it can find support around 19,480-19,450 levels and any upside bounce from here could encounter resistance around 19,700 levels. A decisive break above this hurdle could pull Nifty towards another hurdle of 19,850 levels, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

What should traders do? Here’s what analysts said:

Jatin Gedia, Sharekhan by BNP Paribas
On the daily charts, Nifty has taken support at the 19,530 – 19,500 zone, where support in the form of 61.82% Fibonacci retracement level of the previous rise from 19333 – 19850 is placed. We expect Nifty to stage a pullback after the recent sharp correction in the past couple of days. We believe that today’s low of 19,512 shall act as a crucial support and until that is not breached on the downside we can expect the Nifty to witness a pullback towards 19730 – 19800 from a short-term perspective.

Shrikant Chouhan, Head of Research (Retail), Kotak Securities

Nifty is trading near the 50-day SMA (Simple Moving Average). For the traders now, the 50-day SMA or 19,625 would act as a trend decider level. Above the same, we could see a technical bounce back to 19,700-19,735 levels. On the flip side, below 19,625, the index could retest the level of 19,520-19,480.

Rupak De, LKP Securities
Nifty slipped below the consolidation range low of 19,650 and closed below it for the day. However, the 55EMA acted as a support on a closing basis. In the short term, the index might remain volatile, and a move above 19,650 could take the index towards 19,850. However, a failure to move above 19,650 might result in selling pressure again.

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