“The index broke out of a two-month consolidation zone and such volatility contraction is usually followed by a strong rally. The 61.8% Fibonacci projection level from the start of Nifty’s rally since October is at 23,200. If the breakout is sustained a quick march towards 23,000 can be expected. The demand zone has now shifted upwards to 22,200-22,250 which is expected to act as support for Nifty,” Sheersham Gupta, Director and Senior Technical Analyst at Rupeezy, said.
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What should traders do? Here’s what analysts said
Jatin Gedia, Sharekhan
On the daily charts, we can observe that the Nifty has broken out of a Running Triangle pattern indicating the start of a fresh leg of upmove. The daily Bollinger bands have begun to expand and prices trading along the upper band indicate that there could be sharp trending moves on the upside. We expect Nifty to target levels of 23,000 – 23,100 from a short-term perspective. On the downside, the zone of 21,900 – 21,860 shall now act as a crucial support zone and a breach below it shall lead to a trend reversal.
Tejas Shah, Technical Research, JM Financial & BlinkX
Nifty closed above the crucial resistance zone of 22,250-300 levels on a weekly closing basis and we believe that as long as Nifty is holding above the 22,000 mark, the rally is likely to continue and it can test the next resistance zone of 22,450-500 on an immediate basis and eventually Nifty can test 22,700 on the higher side.
Rupak De, LKP Securities
Nifty remained above 22,000 in the early hours, propelling the market upward throughout the day. The index’s consolidation breakout, coupled with sustained movement above the moving average, fueled a robust rally. Notably, the Relative Strength Index (RSI) confirmed a bullish crossover, indicating positive momentum in the market. Sentiment is optimistic for potential upward movements, with expectations of buying into dips. On the upper scale, resistance is apparent at 22,400/22,600, while support is placed at 22,200.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
