Tech View: Nifty closes above 10-DMA. What traders should do on Friday

NEW DELHI: Nifty on Thursday ended 105 points higher to form a Bullish Piercing candlestick pattern on the daily chart, indicating potential bullish momentum.

It would now be a daunting task for Nifty to go beyond the cluster of hurdles i.e. 21,400 – 21,500 – 21,600. On the other hand, 21,000 – 20,950 has certainly proved its significance. Most probably, we would see benchmark index gyrating in this broad range now and one should avoid getting carried away at higher levels, said Sameet Chavan of Angel One.

What should traders do? Here’s what analysts said:

Kunal Shah, LKP Securities
Nifty recently demonstrated resilience, rebounding strongly from a critical support level at 21,000, affirming a bullish sentiment. The index closed above its 10-day moving average, signaling positive momentum. Key levels to monitor include 21,000 as immediate support and 21,300 as the initial resistance.

Ajit Mishra, Religare Broking
We expect consolidation in the index now however there will be no shortage of trading opportunities on the stock-specific front. Participants should align their trades accordingly and prefer sectors, which are showing relatively higher strength. Apart from the domestic factors, the performance of the US markets would play a critical role in the next directional move so keep a close watch.

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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)

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