Option data suggests a broader trading range between 16,600 and 17,500 zones while an immediate trading range between 16,800 and 17,250 zones.
Chart readers said the formation of two back-to-back Doji patterns in the last two sessions indicate that the market is in the process of a near-term bottom formation.
What should traders do? Here’s what analysts said:
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
One may expect Nifty to move up from here towards the next overhead resistance of 17,300-17,350 levels by next week. Immediate support is at 16,950 levels.
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
Nifty witnessed sharp swings in both directions and ultimately closed in the green for the second consecutive day. On the way up, the 40-hour moving average and the hourly upper Bollinger band placed in the range 17,150 – 17,200 acted as a strong resistance and restricted further upside and on the way down the swing low formed at 16,850 shall act as a crucial support from short-term perspective.We expect Nifty to consolidate between these two parameters from the next few trading sessions. We believe that the pullback rally has some more steam left and Nifty is likely to carry on this positive momentum next week as well.
Rupak De, Senior Technical Analyst at LKP Securities
A Doji pattern followed by a recovery candle on the daily chart indicates the possibility of a bullish reversal. On the higher end, immediate resistance is placed at 17,250, where the bears might try to return to the market. However, if bulls take Nifty above 17,250, the index may move towards 17,500–17,600. On the lower end, support remains intact at 16,950.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
