Nifty has been consistently taking support near its 200-DMA at 16,950, while facing strong resistance at 17,150. Now, it has to hold multiple support of 16,950 zones for a bounce towards 17,117 and 17,171 zones, whereas supports are at 16,950 and 16,888 zones, said Chandan
of .
Options data suggests a shift in a broader trading range between 16,600 to 17,500 zones while an immediate trading range between 16,800 to 17,300 zones.
What should traders do? Here’s what analysts said:
Rupak De, Senior Technical Analyst at
The index found support at its 200-DMA for the third consecutive day. The daily RSI is in a bullish crossover. Over the short term, the index may remain within a band. On the lower end, 16,950 may act as support, whereas 17,300 may act as resistance on the higher end.
Ajit Mishra, VP – Research, Broking
The recent rebound in the global markets, especially the US, is adding to the market strength, and we reiterate our immediate target of 18,100+ in Nifty. Apart from the heavyweights, participants should also look at broader indices for trading opportunities.
Nagaraj Shetti, Technical Research Analyst, Securities
A small negative candle was formed on the daily chart, placed beside the positive candle of the previous session. After a sharp weakness on 11th Oct, the market has been showing a range-bound action with weak bias in the last two sessions.
The underlying trend of Nifty remains choppy, and the market is not showing any strength to sustain the highs. There is a possibility of one more dip down to 16,800-16,750 levels in the next few sessions before showing any meaningful upside bounce from the lows. Immediate resistance is placed at 17,150 levels.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by
The index is attracting support near the key weekly moving averages. Also, in terms of the Fibonacci retracement, the zone of 61.8% retracement & 78.6% retracement of the last week’s bounce is acting as a cushion on the downside. Over there, the index is forming a triangular pattern on the hourly chart.
Ruchit Jain, Lead Research, 5paisa.com
If we look at the derivatives data, there are significant long positions in index futures, while FIIs are short-heavy. Any positive trigger could lead to short covering moves by FIIs, which would support the market to scale higher. Hence, traders are advised to look for buying opportunities from a near-term perspective and trade with a positive bias.
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One
Nifty has been making identical lows since for the last three sessions. This makes 16,950 a key level for the coming trading session. Any sustainable move below this intraday support would lead to further weakness towards 16,800 – 16,750. As of now, we do not expect the possibility of this scenario and remain hopeful of some sustainable relief rally in the US markets.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
