Positive chart pattern like higher tops and bottoms is intact on the daily chart. Having reacted down from the key resistance on Thursday, there is a possibility of some more consolidation or minor weakness for the market in the coming sessions. At the lower levels, Nifty is expected to find support around 19600-19550 levels, said Nagaraj Shetti of HDFC Securities.
What should traders do? Here’s what analysts said:
Jatin Gedia, Sharekhan
Nifty has reached the previous swing high and daily upper Bollinger band placed in the zone 19800 – 19900. Considering the sharp rise in the previous couple of trading sessions, a consolidation appears highly likely. Also, the hourly momentum indicator shows signs of exhaustion and loss of momentum on the upside. On the downside, 19660 – 19620 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
The index encountered resistance near 19850, the consolidation high, on the daily chart, resulting in a sharp intraday decline. However, the index displayed strength by closing above the previous session’s high. In the short term, the market outlook suggests a ‘buy on dips’ strategy as long as the index maintains levels above 19500. A breakthrough above 19850 could propel the Nifty towards the 20000 mark.
(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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