On the daily charts we can observe that the Nifty has witnessed a fall from 25,100 – 23,900 and is now in the process of retracing that fall. It can rally towards 24,520 – 24,651 where the 50% and 61.82% Fibonacci retracement levels of the fall are placed. The immediate support on the downside is placed at 24,200 – 24,150 where the 40 day average is placed, Jatin Gedia of Sharekhan said.
What should traders do? Here’s what analysts said:
Hrishikesh Yedve, Asit C. Mehta Investment Interrmediates
If the index sustains above 24,420, it could trigger a fresh rally towards the 24,600-24,700 levels. Thus, a buy-on-dips strategy should be adopted for Nifty. On the downside, 24,000 will act as a major support level, where the 50-DEMA support is placed.Amol Athawale, Kotak Securities
Technically, the larger texture of the market is still on the weak side. However, as long as it is trading above 24,200/79,200 the pullback formation is likely to continue up to 20-day SMA or 24,525/80,400. Further upside may also continue which could lift the market till 24,625/80,800. On the other side, dismissal of 24,200/79,200 could accelerate the selling pressure. Below which it could slip till 24,000/78,700 or 50 day SMA and 23,850/78,200. For Bank Nifty now, 50,000 would be the immediate reference point for the bulls. Above 50,000, it could bounce back up to 50,800 and 50 day SMA or 51,200. On the flip side, below 50,000 uptrend would be vulnerable. Below the same, we could expect 49,700-49,500.Tejas Shah, Technical Research, JM Financial & BlinkX
Important technical levels were tested both on the upside and downside this week. The positive key take away for Nifty is that it is bouncing back from the lower levels and is also holding above the psychological support level of 24,000 on a closing basis.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
