The positive chart pattern, like higher highs and higher lows, is intact as per the daily chart and Thursday’s high of 19,875 could be considered a new higher high in the sequence. Therefore, any decline from here could open the possibility of formation of a higher bottom around 19,600 – 19,550 levels in the coming sessions, said Nagaraj Shetti of HDFC Securities.
The hourly momentum indicator is exhibiting a negative crossover, indicating that consolidation may continue over the next few trading sessions. Bollinger bands on hourly charts are also contracting, indicating there could be moves within the range, chartists said.
What should traders do? Here’s what the analysts say:
Jatin Gedia, Sharekhan
Given the sharp rise in the previous two trading sessions and the Nifty reaching crucial resistance levels, near-term consolidation is likely. On the downside, 19,630 – 19,600 is the crucial support zone to watch and in the event of a decline, this zone is crucial to hold on so that the uptrend continues.
Rupak De, LKP Securities
Nifty largely traded range-bound, showing mostly bullish sentiment. Over the last two to three days, the ‘buy on dips’ approach has been appreciated by the street since the Nifty crossed the crucial 19,500 mark. The trend is expected to remain positive as the Nifty consistently concludes sessions trading above critical moving averages. Support levels lie at 19,630/19,500 at the lower end, while resistance is placed at 19,850/20,000 at the upper end.(You can now subscribe to our ETMarkets WhatsApp Channel)
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Download The Economic Times news app to get daily market updates and live business news.