Tech View: Nifty finds support at 20-DMA. What traders should do next week
The overall uptrend status of Nifty remains intact and there is a possibility of further upside towards 22,000 levels in the near term. Any dips down to 21,600-21,500 levels could be a buying opportunity, said Nagaraj Shetti of HDFC Securities.
The daily and hourly momentum indicator has a positive crossover which is a buy signal. Derivatives data revealed the highest concentration in 22,000 strike prices, with 21,900 CE and 21,600 PE experiencing resilient volatility.
What should traders do? Here’s what analysts said:
Rupak De, LKP Securities
Nifty found support at 20-DMA for the second day in a row. The trend could weaken if it decisively drops below 21,690. A decisive fall below 21,690 may trigger a correction towards 21,500. On the contrary, if it moves above 21,800, we might observe a recovery in the near term.
Osho Krishan, Angel One
The 20-DMA withheld its significance by providing a cushion to the market and showcasing the bulls’ resilience to not losing grip easily. Also, the change in hands among various sectors kept the play within the traders’ fraternity throughout the week. Amidst all such developments, the time-wise correction phase continued with intermediate support of 21,680 (20 DEMA), followed by the sacrosanct support of 21,500 for the upcoming week. On the flip side, 21900-22000 zone remains a daunting task for the bulls, followed by the sturdy hurdle of 22100. A decisive breakthrough beyond the mentioned support or resistance zone could only trigger the next leg of the rally in the market, and hence, it is advisable to have a pragmatic approach while keeping the aforementioned zone in mind.
Jatin Gedia – Technical Research Analyst at Sharekhan
On the upside, Nifty can rise towards 21807 – 21830 where the key hourly moving averages are placed. Overall, the sideways price action is likely to continue. The range of consolidation is likely to be 21600 – 22050.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
(You can now subscribe to our ETMarkets WhatsApp channel)
Download The Economic Times News App to get Daily Market Updates & Live Business News.
Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price