AgenciesNEW DELHI: Santa Rally today helped the Nifty reclaim the 18,000 mark as the index formed a long bull candle with a small upper shadow on the daily chart. Analysts are of the opinion that the pattern indicates counter attack of bulls after sharp weakness.
The overall structure shows that the index will likely witness both-side movements in the coming days. Nifty may find support around 17,850 followed by 17,800 levels while on the upside 18,220 may act as an immediate hurdle, said Om Mehra of Choice Broking.
During the day, the index failed to reclaim the 50-EMA on the daily timeframe. The overall trend, experts said, remained sell on rise, despite today’s bounce.
What should traders do? Here’s what analysts said:
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
While the undertone is still of caution, the relief rally could continue if global markets maintain the upward momentum. For day traders, 17,900 would be the immediate support zone and above the same, the index could continue the pullback momentum till 18,100-18,150 or 50-day SMA. However, dismissal of 17,900 may accelerate selling pressure, and below the same it could slip till 17,800-17,775.
Rupak De, Senior Technical Analyst at
The momentum indicator remains with a bearish crossover, implying weakness. The trend is likely to remain weak over the near term. The supports are pegged at 17,950/17,800, whereas on the higher end, resistance is placed at 18,100.
Ajit Mishra, VP - Technical Research, Broking
Participants shouldn’t read much into a single-day rebound and wait for the sustainability of the move. We have the next hurdle around the 18,150-18,200 zone in Nifty, so we recommend utilising further recovery to reduce positions. In the absence of any major event, the upcoming expiry of December month derivatives contracts will keep the traders busy.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by
The Nifty had seen a sharp decline in the last week that had pushed the intraday momentum indicators into the oversold zone. In terms of the Fibonacci retracement, the index had reached 50% retracement of the rally from September to December 2022. Consequently, the index had a swift bounce on December 26. It has moved up to retest a trendline, which was broken on the downside on Friday. Thus 18,100-18,200 will be the near-term hurdle zone, which will decide further course of action for the index. Overall, structure shows that the Nifty is likely to witness short-term consolidation with key support at 17,800.
Manish Shah, Independent Technical Analyst
Nifty took support at rising trendline and also at the support of 100-day moving average. Nifty seems poised for a rally towards 18,450-18,500 over the next couple of days. The major support is at 17,800. If Nifty breaks below this zone, there could be a cascading decline.
Volatility is likely to be very high in the next few days as December is drawing to a close.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
The overall structure shows that the index will likely witness both-side movements in the coming days. Nifty may find support around 17,850 followed by 17,800 levels while on the upside 18,220 may act as an immediate hurdle, said Om Mehra of Choice Broking.
During the day, the index failed to reclaim the 50-EMA on the daily timeframe. The overall trend, experts said, remained sell on rise, despite today’s bounce.
What should traders do? Here’s what analysts said:
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
While the undertone is still of caution, the relief rally could continue if global markets maintain the upward momentum. For day traders, 17,900 would be the immediate support zone and above the same, the index could continue the pullback momentum till 18,100-18,150 or 50-day SMA. However, dismissal of 17,900 may accelerate selling pressure, and below the same it could slip till 17,800-17,775.
Rupak De, Senior Technical Analyst at
The momentum indicator remains with a bearish crossover, implying weakness. The trend is likely to remain weak over the near term. The supports are pegged at 17,950/17,800, whereas on the higher end, resistance is placed at 18,100.
Ajit Mishra, VP - Technical Research, Broking
Participants shouldn’t read much into a single-day rebound and wait for the sustainability of the move. We have the next hurdle around the 18,150-18,200 zone in Nifty, so we recommend utilising further recovery to reduce positions. In the absence of any major event, the upcoming expiry of December month derivatives contracts will keep the traders busy.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by
The Nifty had seen a sharp decline in the last week that had pushed the intraday momentum indicators into the oversold zone. In terms of the Fibonacci retracement, the index had reached 50% retracement of the rally from September to December 2022. Consequently, the index had a swift bounce on December 26. It has moved up to retest a trendline, which was broken on the downside on Friday. Thus 18,100-18,200 will be the near-term hurdle zone, which will decide further course of action for the index. Overall, structure shows that the Nifty is likely to witness short-term consolidation with key support at 17,800.
Manish Shah, Independent Technical Analyst
Nifty took support at rising trendline and also at the support of 100-day moving average. Nifty seems poised for a rally towards 18,450-18,500 over the next couple of days. The major support is at 17,800. If Nifty breaks below this zone, there could be a cascading decline.
Volatility is likely to be very high in the next few days as December is drawing to a close.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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