For traders now, 50-day SMA or 22,400/73,500 and 22,500/74,000 would be the key resistance areas while 21,600-21,300/71,000-70,200 would act as key intraday support zones. “We are of the view that the current market texture is extremely volatile and uncertain; hence, it is advisable that traders should remain cautious for next few trading sessions,” said Shrikant Chouhan, Head of Equity Research, Kotak Securities.
What should traders do? Here’s what analysts said:
Jatin Gedia, Sharekhan
Nifty has decisively broken down below the previous swing low of 21,820, which has violated the higher-top and higher-bottom formations and suggests change in short-term trend. Our primary outlook is that Nifty shall now retrace the rise it has witnessed from 18,840 to 23,340 between October 2023 and May 2024. The crucial support levels to keep handy are 21,100, which is the 200-day moving average and 50% Fibonacci retracement level of the entire up move. A close below this support zone can lead to further decline towards 20,560, which is the 61.82% Fibonacci retracement level. On the upside, 22,310 – 22,550 shall act as an immediate hurdle from a short-term perspective. The range of consolidation is likely to be 21,000 – 22,500.
Tejas Shah, JM Financial & BlinkX
Nifty closed below the crucial support zone of 22,400-500 (50-day EMA) in Tuesday’s trading session, which is not a healthy sign. Technically, the evidence continues to suggest that the markets are likely to remain under pressure in the near term. Presently, Nifty is finding support around the 200-day exponential moving average, which is currently placed at 21,250 levels. Support for Nifty is now seen at 21,750-800 and 21,250-300 levels. On the higher side, immediate resistance is at 22,300 levels and the next crucial resistance is at 22,500 mark.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)