The index shows initial signs of bottoming out near 17,000 mark and could give a pullback towards 17,450-17,776 levels. On the flip side, if it breaks below 16,836 then it can move lower towards 16,600–16,410 levels
Technically, 16,800 is long-term trendline support and a previous demand zone while 200-DMA (daily moving average) is placed around 16,600 level, therefore we can expect a pullback rally from here.
Hot Stocks | First couple of sessions would be important for market as it will set the tone ahead of the mega event. One should focus on Financial and Auto space because in case of a recovery, they are the ones to be the frontrunners
The Nifty is placed very close to the support zone (17,550-17,650) and is also very oversold on the shorter time frame. Thus in the sessions to come we might see the index consolidate between the 18,000-17,550
A momentum oscillator RSI and indicator Stochastic have reversed from overbought territory, which suggests bearish to sideways sentiments for the coming days, says Rohan Patil of Bonanza Portfolio
Hot Stocks | Tuesday's low of 18,085 is at 9-DMA; below this, 17,950-17,800 will be the next important support level while 17,650 is critical support at any correction, however, every correction is a good buying opportunity, says Santosh Meena of Swastika Investmart
Vinay Rajani of HDFC Securities believes that Nifty is in continuation of an uptrend and same should extend. Currently Indian Markets are outperforming and we could see Indian benchmarks to register new all-time highs.
For the week, 18,350 remains the level to watch. Once it is surpassed, there is no major hurdle visible before 18,600
The Nifty has resistance in the 18,270-18,330 zone whereas the support lies at 17,900 mark, says Malay Thakkar of GEPL Capital.
Nifty50 is most likely to cap near its previous resistance zone which is placed at 18,600 and if the index manages to cross it, 19,000 will be on the cards soon. The immediate support for the index is placed near 17,900 levels, says Rohan Patil of Bonanza Portfolio.
Vinay Rajani of HDFC Securities says they believe that the Nifty is in uptrend and dips should be utilised to create longs positions. Support for the Nifty is seen at 17,640. Upside targets for the Nifty are seen at 18,210 and 18,610
Vidnyan Sawant of GEPL Capital believes the Nifty will face strong resistance at 18,210 and 18,604 mark. On the flip side, the support levels would be placed at 17,380 and 16,830 levels.
The Nifty50 is rising above its short and medium-term moving averages which is a positive sign and the participation from largecap counters is what gives confidence to investors.
Momentum indicator RSI has moved above the 60 mark that may generate thrust for further upside. Nifty is giving proper follow-up of bullish reversal morning star candlestick formation on the weekly chart
Nandish Shah of HDFC Securities believes that the short-term trend will remain bullish till the Nifty is trading above 17,200 levels
Traders are advised to trade with a positive bias as long as the index remains above 17,000–16,800
The range of 17,000-17,300 on Nifty50 is very tight and bulls and bears are defending their respective territory very strongly. The major averages are flatting out. It shows that upper side move will be limited though downside also kept near to 17,000.
Vinay Rajani of HDFC Securities says markets are on their path to recovery, however, short-term bullish trend reversal will be confirmed only above 17,170
Nifty has reached a good hurdle zone of 16,950. If it manages to sustain above it, then some short-covering can't be ruled out and 17,140 will be the next level for the index. The immediate support is coming near 16,850, says Vishal Wagh of Bonanza Portfolio.
NIfty is expected to remain volatile and likely to trade in a broader range of 16,500-17,000. The Nifty is still holding above its 200-day exponential moving average which is placed around 16,300 levels on daily charts, says Shitij Gandhi of SMC Global
Nandish Shah of HDFC securities believes that, short term trend of the Nifty remains weak. Therefore, their advice is to remain cautious till Nifty closes above the 17,000 levels.
Now the way the market tumbled on Friday, recent swing low of around 16,800 is in jeopardy now. "We will not be surprised to see it happening to test 16,500-16,200 zone on the Nifty50," says Sameet Chavan of Angel One.
Looking at the price action, Karan Pai of GEPL Capital believes that the 17,200 mark is going to act as a make-or-break level. If the prices manage to breach below the 17,200 mark we might see an acceleration in bearish momentum.
The Nifty is expected to trade in a range of 17,600–16,900 for the next few trading sessions until prices do not give any superior move on the either side of the range
Technical indicators suggest that volatility is likely to grip market in the upcoming sessions as well. However, the Nifty has completed one leg of correction, after a steep run-up seen last week and now the index is trading near important retracement support levels at 17,200 and 17,100.