The positive chart pattern like higher tops and bottoms is intact as per the daily chart and Thursday’s swing high of 19,875 could be considered as a new higher top of the sequence. Hence, any decline from here could open a possibility of higher bottom formation around 19,600 -19,550 levels in the coming sessions, said Nagaraj Shetti of HDFC Securities.
The hourly momentum indicator has a negative crossover, indicating that the consolidation can continue over the next few trading sessions. The Bollinger bands on the hourly charts are also contracting indicating that there could be rangebound moves going ahead, chartists said.
What should traders do? Here’s what analysts said:
Jatin Gedia, Sharekhan
Considering the sharp rise in the previous couple of trading sessions and the Nifty reaching crucial resistance levels, short-term consolidation is likely. On the downside, 19,630 – 19,600 is the crucial support zone to watch out for and in case of a dip, this zone is crucial to hold on for the uptrend to continue.
Rupak De, LKP Securities
Nifty has largely traded within a range, showing a predominantly bullish sentiment. Over the past two to three days, a ‘buy on dips’ approach has been loved by the street since the Nifty crossed the crucial 19,500 mark. The trend is expected to stay positive as the Nifty consistently concludes trading sessions above the critical moving averages. Support levels are situated at 19,630/19,500 on the lower end, while resistance is placed at 19,850/ 20,000 on the higher end.(You can now subscribe to our ETMarkets WhatsApp channel)
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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