The daily momentum indicator has triggered a fresh positive crossover which is a buy signal.
The short-term trend of Nifty remains positive, but the market is not gaining momentum through the hurdle. Unless the immediate resistance of 17,200 is taken out decisively on the upside, the chances of a sharp upmove could be less, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities, adding that the immediate support is at 17,020 levels.
What should traders do? Here’s what analysts said:
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
The pullback is not yet complete and we expect it to continue over the next few trading sessions. On the upside, we expect it to retrace till levels of 17,460 – 17,500, where resistance in the form of the 200-day moving average and also a gap formed on March 10 is placed. On the downside, the immediate support stands at the lower end of the downward-sloping channel 16,800 – 16,830.
Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities
Nifty remains in a buy-on-dip mode as long as the index stays above 17,000. The immediate hurdle on the upside is at 17,200, where the highest open interest is built up on the call side. Once it has surpassed the resistance, the index will witness a sharp move on the upside toward the 17,500 level.
Rahul Ghose, Founder & CEO – Hedged
Nifty will turn into a sell-on-rally only after the breach of 16,800 on the daily charts, that’ll also ensure a break in its trendline. Until then, the sell-on-rally texture of the market is on pause. Traders are going into tomorrow’s expiry in Bank Nifty with 40,000 short straddle positions, and this is for the monthly expiry as well. Bank Nifty will gain momentum up to 40,800 once it crosses the 40,200 mark. Then there is a congestion zone between 40,800 and 41,200, and beyond 41,200, fresh long positions can be aggressively initiated on this index.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)