Nifty close above 10,450 to trigger buying: Rajesh Palviya
ET CONTRIBUTORS|
Updated: Nov 13, 2017, 08.59 AM IST
Traders should not take aggressive positions in the index and should instead keep focusing on individual stocks with a proper exit strategy, say technical analysts. Banking, auto, infrastructure and consumer durables sectors are expected to show strength in coming weeks, they say
Where we are?
During the corrective action in recent past, the Nifty has managed to hold its last three-month consolidation breakout level of 10,175 on the weekly chart which indicates the trend is likely to remain positive in near term. But we may witness volatility to be the new normal in the near term on account of the quarterly earnings outcome.
What is in store?
The chart pattern suggests that unless and until Nifty does not manage to cross 10,380-10,450 resistance, the market may witness selling pressure on higher side and consolidate further. Any weekly close above 10,450 would initiate fresh buying action which would lead the index towards 10,550-10,650 levels in short /medium term. However, any minor profit booking action would get support around 10,250-10,170 levels and if Nifty breaks below 10,170, then it may drift down towards 10,100-10,000 in the short term . Nifty is expected to trade in range of 10,200-10,500 in forthcoming weeks with mixed bias.
What should investors do?
On the daily chart, Nifty has formed a hammer-like formation with long lower shadow indicating buying at lower levels. On the higher side, Nifty has immediate resistance at 10,370-10,400 levels which is 50 per cent and 61.80 per cent Fibonacci retracement of the recent fall from 10,490-10,254. We advise to buy stocks, if Nifty corrects in near term to 10,250-10,200 which is a strong support zone. Banking, automobile, infrastructure and consumer-durable sectors are expected to show strength in coming weeks.
(The author is Head Technical & Derivatives Analyst at Axis Securities)
Where we are?
During the corrective action in recent past, the Nifty has managed to hold its last three-month consolidation breakout level of 10,175 on the weekly chart which indicates the trend is likely to remain positive in near term. But we may witness volatility to be the new normal in the near term on account of the quarterly earnings outcome.
What is in store?
The chart pattern suggests that unless and until Nifty does not manage to cross 10,380-10,450 resistance, the market may witness selling pressure on higher side and consolidate further. Any weekly close above 10,450 would initiate fresh buying action which would lead the index towards 10,550-10,650 levels in short /medium term. However, any minor profit booking action would get support around 10,250-10,170 levels and if Nifty breaks below 10,170, then it may drift down towards 10,100-10,000 in the short term . Nifty is expected to trade in range of 10,200-10,500 in forthcoming weeks with mixed bias.
What should investors do?
On the daily chart, Nifty has formed a hammer-like formation with long lower shadow indicating buying at lower levels. On the higher side, Nifty has immediate resistance at 10,370-10,400 levels which is 50 per cent and 61.80 per cent Fibonacci retracement of the recent fall from 10,490-10,254. We advise to buy stocks, if Nifty corrects in near term to 10,250-10,200 which is a strong support zone. Banking, automobile, infrastructure and consumer-durable sectors are expected to show strength in coming weeks.
(The author is Head Technical & Derivatives Analyst at Axis Securities)
