On the daily chart, a small positive candle with upper and lower shadow was formed, indicating the formation of a high wave type candlestick pattern. “Having declined from the hurdle of 17,425 levels on Thursday, Nifty forming such a high wave pattern indicates minimal negative impact on the market post weakness from the hurdle. Hence, this is also signaling that the market could retest the above said resistance in the short term and eventually the resistance could be broken on the upside,” said Nagaraj Shetti, Technical Research Analyst,
Chart readers said the downside risk for Nifty is now seen limited at the make-or-break support at 17,017 mark. Short-term resistance is positioned at 17,500 levels while the trend is expected to remain positive as long as the index sustains above 17,300.
What should traders do? Here’s what analysts said:
Rupak De, Senior Technical Analyst at
The index closed above 50-EMA, confirming the ongoing positive trend. Going forward, the trend is expected to remain positive as long as the Nifty sustains above 17,300. On the higher end, 17,600-17,700 zone may act as resistance, whereas, on the lower end, support is visible at 17,200.
Apurva Sheth, Head of Market Perspectives, Samco Securities
Following a hefty battering from 18,100 levels a few weeks ago, it appears that the bulls are finally making a comeback. The bulls are expected to maintain 17,000 for the month of October before attempting to retest at 18,100. Short-term resistance is positioned at 17,500 levels.
Ajit Mishra, VP – Research, Broking
Global markets, especially the US, are still not offering indications for a sustained recovery so volatility is here to stay and participants should plan overnight positions accordingly. Meanwhile, on the index front, the tone would remain positive till the Nifty holds 17,100. We feel the prudent approach is to focus on top-performing stocks from across sectors and use intermediate dips to add them instead of chasing laggards, in hope of a rebound.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The underlying uptrend of Nifty remains intact. The consolidation movement may be extended in the early part of next week and the market could eventually witness sharp upside bounce from the lows by next week. A decisive upside breakout of the hurdle of 17,450 is likely to pull Nifty towards another important resistance of 18,000-18,100 levels. Immediate support is placed at 17,200 levels.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)