The short-term trend of the Nifty remains positive. Having moved above the key resistance of around 19,600 levels, there is a possibility of Nifty advancing towards the next set of hurdles of around 19,850 and the next 20,050 levels in the near term. Any dips down to the immediate support of 19,500 could be a buy-on-dips opportunity, said Nagaraj Shetti of HDFC Securities.
What should traders do? Here’s what analysts said:
Jatin Gedia, Sharekhan
On the daily charts, we can observe that the narrow range of the last few trading sessions has been decisively broken on the upside. The index is now stretching higher towards 19,800 – 19,850 where resistance in the form of the daily upper Bollinger band and the previous swing high is placed. The daily and hourly momentum indicator has a positive crossover which is a buy signal and hence intraday dips should be bought into. In terms of levels, 19,580– 19,550 is the crucial support zone while 19,800 – 19,850 is the immediate hurdle zone from a short-term perspective.
Rupak De, LKP Securities
Nifty has witnessed a robust upward movement, propelled by a strong global equity market sentiment, particularly following a gap-up opening. On the daily chart, the index has shown significant upward momentum after a consolidation phase, indicating an increase in optimism. The overall trend appears positive, with the index consistently maintaining levels above the critical moving average. Looking ahead, bullish sentiment is likely to persist as long as the index remains above 19,500. On the upper side, resistance is anticipated in the range of 19,700 to 19,850.
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