“We are of the view that, 20-day SMA or 21,500/71,250 could act as a sacrosanct support level for the traders. Above the same, the pullback formation is likely to continue. Above which chances of hitting 21,720-21,760/71,900-72,100 would turn bright. However, below 20 day SMA or 21,500/71,250 the selling pressure is likely to accelerate. Below which, the market could slip till 21,400-21,355/71,000-70,800,” said Shrikant Chouhan of Kotak Securities.
What should traders do? Here’s what analysts said:
Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities
Nifty bounced back strongly from its important support at 21,500, indicating that bulls are quite active at this level. The index closed at 21,623, near its resistance. If it manages to close above 21,700-21,750 levels, we might see the Nifty reaching 22,000. For those looking to buy Nifty, the recommended range is between 21,550-21,600. Set a stop loss at 21,480 and aim for a target of 21,750.
Sheersham Gupta, Director and Senior Technical Analyst at Rupeezy
It was the eleventh trading session when Nifty closed between the narrow range of 21500 to 21800. Nifty formed a strong bullish rejection candle indicating a limited downside movement of the market. It is also evident from the weekly option chain where puts have been heavily written.
As the results season kicks in, corporate performance will decide the market’s future trajectory. Bad results from the IT sector are likely to have a limited impact on the market as the underperformance is already factored in. However, better-than-expected results may propel the market towards the 22,000 level.
Mandar Bhojane, Choice Broking
On the downside, crucial support is positioned at 21,450–20,350, while resistance is situated at 21,700–21,800. Overall, the trend is positive, and the current dip should be viewed as a buying opportunity.
(You can now subscribe to our ETMarkets WhatsApp channel)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)