Tech View: Nifty @ 20,000 target achieved. What traders should do on Tuesday

Before ending Monday’s session 176 points higher, Nifty not only scaled a new record high but also crossed the 20,000 level for the first time ever. The milestone day was marked with a long bull candle on the daily charts.

A sustainable move above the 20K mark is expected to pull Nifty towards the next overhead resistance of around 20,450 levels (38.2% Fibonacci extension). Immediate support is placed at 19,850 levels, said Nagaraj Shetti of HDFC Securities.

Momentum indicators on the daily and hourly time frame are in sync with the price action.

What should traders do? Here’s what analysts said:
Jatin Gedia, Sharekhan by BNP Paribas
We can expect the positive momentum to continue. On the upside, we expect the Nifty to target levels of 21000 from a short-term perspective. In terms of levels, 19865 – 19810 is the crucial support zone while 20,200 – 20,250 shall act as an immediate hurdle zone.

Amol Athawale, Kotak Securities

Market sentiment is expected to remain upbeat as long as the Nifty stays above the 19,900 level. On the upside, we can identify an immediate resistance zone between 20,100 and 20,200. If there is a convincing breakthrough above 20,200, it could pave the way for the Nifty to advance towards the 20,500 mark.

Shrikant Chouhan, Head of Research (Retail), Kotak Securities

On daily charts, the index has formed a bullish candle, and on intraday charts, it is consistently forming a higher high and higher low series formation, which is largely positive. For the trend-following traders, 19,935 could act as a key support level, above which the index could move up to 20,100-20,175. On the flip side, below 19,935, traders may
prefer to exit from long positions, and below the same, we could see a quick intraday correction till 19,850-19,825.

(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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