Tech View: Nifty forming higher lows for 2 days. What investors should do on Thursday

The Headline index Nifty on Tuesday formed a long bullish candle on the daily charts as it ended with a gain of 387 points. The index has been forming higher bottoms for the last two sessions, indicating the continuation of the uptrend in the near future.

Now, the index has to hold above the 17,200 zones for an up move towards 17,442 and 17,500 zones, whereas support can be seen at 17,167 and 17,071 zones, said Chandan

of .

Giving comfort to bulls, the fear gauge index India VIX cooled down over 8% to 19.57 level.

“The short-term trend of Nifty has turned up sharply after a broader range movement of the last few sessions,” said Nagaraj Shetti, Technical Research Analyst,

Securities. He sees resistance at 17,600 and 18,000 levels in the near term, while the immediate support is at 17,150 levels.

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

Ajit Mishra, VP – Research, Broking

Markets are currently dancing to global tunes, and the rebound in the US market has triggered this rebound. Going ahead, Nifty should hold the 17,200 mark to maintain a positive bias and inch towards the 17,400+ zone. We reiterate our view to focus more on stock selection and risk management citing excessive volatility.

Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty smartly broke out upwards after sideways consolidation. It will now face resistance in the 17,291-17,401 band, while the 17,176-17,196 band will offer support in the near term.


Rupak De, Senior Technical Analyst at


Nifty has moved higher after consolidation on the daily chart, suggesting a rise in optimism among market participants. The index placed itself above 200-DMA, a bullish setup.

The momentum indicator entered a bullish crossover and the short-term trend looks positive. A decisive move above 17,300 may induce a strong rally in the market. On the lower end, support is at 17,090, while resistance on the higher end is visible at 17,600/17,725.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

The short term market structure is positive but due to temporary overbought conditions. We could see range bound activity in the near future. For traders, 17,200-17,150 would be the key support zone, whereas 17,400-17,425 would act as an important resistance zone for the index.

Buying on intraday correction and selling on rallies would be the ideal strategy for day traders.

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by

Going ahead, 17,300 is the immediate barrier to watch out for. Unless that is crossed on a closing basis, the index is likely to witness short term consolidation. However, if the bulls manage to surpass 17,300 on a closing basis, then the index can stretch till 17,500. Near term support shifts higher to 17,000.

Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services

The market is showing strength after making a near-term bottom around last week’s Nifty low of around 16,800 levels. We expect momentum in Nifty to continue towards the 17650-17700 zone.

Palak Kothari, Senior Technical Analyst, Choice Broking

Nifty has been trading with the support of above 89-DMA as well as given closing above 200-DMA, which points out bullish momentum in the counter. Furthermore, the index has given a breakout of the rectangle pattern on an hourly chart which suggests strength on the upside.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)



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