The short-term trend of the Nifty remains negative. A slide below the immediate support of 19,480 could drag Nifty towards another important support of 19,350 levels in the near term. Immediate resistance is placed around 19,650 levels, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
The hourly momentum indicator is showing a positive divergence, however, price confirmation is missing. The daily momentum indicator has triggered a negative crossover which is a sell signal.
What should traders do? Here’s what analysts said:
Jatin Gedia, Sharekhan by BNP Paribas
On the daily charts, we can observe that Nifty is trading at the crucial support zone of 19,530 – 19,500 where 61.82% Fibonacci retracement level of rise from 19,333 – 19,850 is placed. Considering prices are trading at crucial support levels only a breach below 19,500 – 19,450 zone shall lead to a sharp decline. In terms of levels, 19,550 – 19,500 is the crucial support zone, while 19,640 – 19,660 shall act as an immediate hurdle zone.
Amol Athawale, Vice President – Technical Research, Kotak Securities
As long as the index is trading below the 20-day SMA, the weak sentiment is likely to continue. For traders, 19,700 would be the immediate hurdle, and below the same, the index could slip to 19,450-19,350. On the other side, above 19,700 or 20-day SMA, it could retest the level of 19,800-19,850. For Bank Nifty, as long as it is trading below 44,500 or a 50-day SMA, the weak sentiment is likely to continue, below which, it could slip to 200-day SMA or 43,200-43,000. On the flip side, above 43,900 a minor pullback rally is possible till 44,300.Rupak De, LKP Securities
The current trend appears to be negative, with immediate support situated at 19,500. A further decline below this level could potentially lead the index towards the range of 19,150 to 19,000. On the upside, the zone between 19,600 and 19,650 is expected to act as a strong resistance. A move above 19,650 could trigger short covering in the market.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)