The short-term trend of Nifty continues to be positive. There is a higher possibility of an upside breakout of 21,950-22,000 mark in the short term. Immediate support is at 21750, said Nagaraj Shetti of HDFC Securities.
What should traders do? Here’s what analysts said:
Ruchit Jain, Lead Research, 5paisa.com
In the last few days, Nifty has traded within a broad range where 22,127 has seen resistance as it coincided with the previous swing high of mid-January and that hurdle has not been taken out yet. On the other hand, the 20-DMA which is placed around 21,660 is the important support to watch. FIIs have covered some of their short positions in the index futures segment which were short-heavy at the start of the series. However, around 63 percent of their positions are still on the short side. It seems that the index is in a consolidation phase and awaiting a breakout from the range of 22,127-21,660 for any directional move. The reaction post the RBI policy will be important to watch as a breakout on either side of the above-mentioned range will signal the next directional move. Traders are advised to stay cautious for now and trade in the direction of the breakout.
Osho Krishan, Angel One
From a technical standpoint, the time-wise correction remains static, with no clarity in the trend and Nifty being confined in a slender range. Reiterating to our commentary, 22,000-22,100 remains a daunting task for the bulls, and this needs to be conquered decisively to trigger the next round of rallies in the index. Meanwhile, on the lower front, a dip below 21,800-21,750 could further aggravate the room of profit booking towards the 20 DEMA, placed near the 21,670 subzone on an immediate basis. Till then, a range-bound move could be anticipated with buying traction around the support areas while cooling off near the mentioned resistance zone.
Sheersham Gupta, Rupeezy
The short-term trend is still on the upside as Nifty has been forming higher highs and higher lows on the 30-minute timeframe. The call option premiums at the ATM are significantly higher than the put option premiums for the weekly expiry. With supportive global cues and a fall in the Dollar Index, an upmove from here is more likely.
Jatin Gedia – Technical Research Analyst at Sharekhan
On the upside, 22,000 – 22,050 is acting as a stiff resistance while the key hourly moving averages placed in the range 21800 – 21900 have been absorbing all the selling pressure. The Nifty needs to decisively move beyond this narrow range for the trending moves to begin on either side. Until then, stock-specific action and sector rotation is likely to continue. Key support levels are 21730 – 21680 while the immediate hurdle zone is placed at 22000 – 22053.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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