The underlying trend of Nifty remains choppy. Having placed near the crucial supports around 24500 levels, there is a higher possibility of an upside bounce in the market from here or from lower supports. Immediate resistance is placed at 25250, said Nagaraj Shetti of HDFC Securities.
What should traders do? Here’s what analysts said:
Tejas Shah, Technical Research, JM Financial & BlinkX
The psychological support of 25,000 was breached on a closing basis for two consecutive days, which indicates that the weakness is likely to continue. At the current juncture, the bears are in full control of the markets and are using every pull back rally to create short positions. Support for Nifty is now seen at 24,920 and 24,750. On the higher side, immediate resistance for Nifty is at 25,000-050 levels & the next resistance is at 25,250-275 levels.
Amol Athawale, Kotak Securities
We are of the view that, in the near future 50-day SMA (Simple Moving Average) or 25050/81900 would act as a sacrosanct level. If the market succeeds to trade above the same, then it could move up till 25250 -25400/82500-83000. On the flip side, as long as it is trading below the same, the weak sentiment is likely to continue. Below which, it could retest the level of 24700/80700. Further down side may also continue which could drag the index till 24550/80200. For Bank Nifty, 50 day SMA or 51500 would be the trend decider level. Above the same, it could bounce back till 52000-52300. On the flip side, below 50900 it could slip till 50500-50250.
Hrishikesh Yedve, Asit C. Mehta Investment Interrmediates
Technically, on the daily chart, the index formed a small red candle, indicating uncertainty. However, the index is still holding above the low of the inside bar candle, as well as the 75-Days Exponential Moving Average support. Thus, as long as the index holds above the low of 24,690, levels of 25,150–25,350 could be possible. However, a close below 24,690 could lead to a fresh breakdown.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)