Tech View: Nifty chart shows bearish reversal; what traders should do on Friday
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On the daily chart, the index has formed a hanging man pattern, indicating a potential bearish reversal in the short term, said Rupak De, senior technical analyst at LKP Securities.
“Immediate support is positioned at 22,300; a decisive drop below this level could lead the index towards 22,000-21,900 in the short term. On the upside, resistance is observed at 22,600-22,650,” the analyst said.
Here’s what other analysts are saying about the near-term market trajectory:
Jatin Gedia, technical analyst, Sharekhan by BNP Paribas
The Nifty is heading towards the upper end of the rising channel placed at 22,700. On the downside, the zone of 22,350–22,300 shall act as a crucial support from a short-term
perspective. Minor degree pullbacks towards support zones should be used as a buying opportunity.
Osho Krishan, senior analyst – technical & derivative research, Angel One
The Nifty 50 started the session with a notable gap up, but failed to sustain the higher ground and slipped to the week’s low of 22,300. However, a smart recovery from the bulls in the latter half helped the index recoup losses and inch above the pivotal zone.
As we head into uncharted territory, sustainability is the primary concern, and the participation of broader markets is highly considered.
From a technical point of view, the closure around the pivotal zone 22,500 and a follow-up buy is anticipated to trigger a fresh leg of rally in the index. On an immediate basis, 200-300 points of the rally could be seen if the global peers show no hindrance.
On the downside, 22,350-22,300 has already proved its mettle and is expected to act in the same manner, followed by the strong support of the 22,200 zone in the comparable period.
We remain sanguine about the market’s undertone, but we would advise refraining from aggressive longs and instead utilizing dips to go long in the market.
Rahul Ghose, CEO, Hedged.in
Even though Nifty and Sensex have hit their all-time highs once again, the stance that most people would tend to take is that markets will break out from here as a new level is crossed. It is very important to understand at this juncture that markets are slightly overvalued and the stance should shift to being cautious and not over bullish.
The upside of the market before elections is capped from this level and a risk-to-reward perspective, it is better to not be in aggressive longs at this point.
(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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