The short-term trend of Nifty continues to be positive. “We expect Nifty to move into new all-time highs beyond the 20K mark in the coming week. The potential upside target of a larger triangle upside breakout comes around 20,100-20,200 levels for the near term. Immediate support is placed at 19,650 levels,” said Nagaraj Shetti of HDFC Securities.
Daily and hourly momentum indicators have a positive crossover which is a buy signal.
What should traders do? Here’s what analysts said:
Jatin Gedia, Sharekhan by BNP Paribas
On the hourly chart, we can observe that Nifty has reached the upper end of the rising channel and hence a consolidation is likely in the upcoming week. The range of consolidation is likely to be 19,850 – 19,670. On the upside, we expect 19,900 which is around the swing high it touched during July. In terms of levels, 19,630 – 19,670 shall act as a crucial support zone while 19,860 – 19,900 shall act as an immediate hurdle zone.
Amol Athawale, Kotak Securities
Technically, after a promising reversal formation, the Nifty has been holding a higher bottom formation and is comfortably trading above 50 and 20-day SMA (Simple Moving Average) which is largely positive. It has also formed a long bullish candle on weekly charts, which supports a further uptrend from the current levels. For the trend-following traders, 19,700-19,650 would be the key support levels, and above the same, it could rally to 19,900. Further upside may lift the market to 20,000. On the flip side, below 19,650, the uptrend would be vulnerable and could see a short-term correction till the 50-day SMA or 19,550-19,500 levels.
(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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