The index has been taking support near 24,000 levels and maintaining the 50-DEMA support despite turbulence, resulting in a relief rally.
The short-term trend of Nifty seems to have reversed on the upside. Follow-through up move is required from here to consider this as a short-term bottom reversal pattern.
A decisive move above 24,400 levels could pull Nifty towards another resistance of 24,700 levels quickly. Immediate support is at 24,050 levels, said Nagaraj Shetti of HDFC Securities.
What should traders do? Here’s what analysts said:Rupak De, LKP Securities
On the higher end, resistance is observed at the 24,400-24,500 levels. Selling pressure around that level might induce a correction in the market. On the higher end, the trend might change to bullish if Nifty gives a decisive breakout above 24,500.Hrishikesh Yedve, Asit C. Mehta Investment Interrmediates
Nifty’s 50-DEMA is currently near 23,980, and as long as the index is holding above it, the relief rally is likely to continue. On the higher side, immediate resistance for the index is placed near 24,430, where 21-DEMA hurdle is located followed by 24,700.Jatin Gedia, Sharekhan
On the daily charts, we can observe that Nifty has managed to close above the 40-day average (24138). India Vix has cooled off and there has been a significant improvement in market breadth. All these parameters are suggesting that the Nifty is likely to witness continuation of the pullback. On the upside, 24520 – 24550 is the immediate hurdle while 24000 is the immediate support zone from a short term perspective.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
