Tech View: Pullback momentum may continue till Nifty holds 19,000-mark. What traders should do on Tuesday

Nifty on Monday formed a reasonable positive candle with a long lower shadow on the daily chart as it ended 94 points higher above the 19,140 mark.

The short-term trend of Nifty continues to be positive with rangebound action. The present upside bounce is expected to continue for the short term. The immediate hurdles to be watched are around 19,250 and the next 19,450 levels in the near term. Immediate support is at 19,050 levels, said Nagaraj Shetti of HDFC Securities.

What should traders do? Here’s what analysts said:

Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas
Nifty has been in a pullback mode since the last couple of trading sessions and is now approaching the crucial resistance zone of 19,160 – 19,220, where resistance in the form of the hourly upper Bollinger band and the 40-hour exponential moving average is placed. Hence, it is advisable to be cautious with the longs. On the downside, a breach below 18,940 can lead to the start of the next leg of the fall. In terms of levels, 19,180 – 19,220 shall act as a support zone, while 18,950 – 18,930 shall act as an immediate support zone.

Kunal Shah, Senior Technical & Derivative analyst at LKP Securities

Despite a broader negative outlook due to the prevailing downtrend, the possibility of a pullback exists, potentially taking the index to the 19,300 mark. However, it’s crucial to note that the support level at 18,900 is critical, and any closing breach below it would shift control to the bears, potentially leading the index down to the 18,500-18,300 range.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Nifty took support near 18,950 and bounced back sharply. On daily charts, the index has formed a bullish candle, and on intraday charts, it is holding an uptrend continuation formation, which is largely positive. As long as the index is holding the 19,000 mark the pullback momentum is likely to continue and could move to 19,200-19,225 levels. On the flip side, below 19,000 traders may prefer to exit from the long positions.

(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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