On the weekly charts, a reasonable positive candle with minor lower shadow was noticed. A significant down gap resistance of previous week on the weekly chart has been filled completely at 24,700 levels and the market closed above it, he said.
What should traders do? Here’s what analysts said:
Amol Athawale, VP-Technical Research, Kotak SecuritiesTechnically, 24,700/80,800 and 20 day SMA or 24,550/80,300 would be the key supports zones while 24,900-25,000 / 81,500-81,900 could act as crucial resistance areas for the traders. However, below 20 day SMA or 24,550/80,300 uptrend would be vulnerable. For Bank Nifty 20 day SMA or 50,700 would be the immediate reference point for the bulls. As long as it is trading above the same, the bullish sentiment is likely to continue. On the higher side, it could move up till the 50-day SMA or 51,500. Further upside may also continue which could lift the index till 51,800. On the flip side, below 50,700 it could retest the level of 50,250-50,000.
Rupak De, LKP Securities
Nifty experienced another day of lackluster movement. The RSI is showing a bullish crossover, and the trend remains positive as it closed above the 21 EMA. The market seems to favor a “buy on dips” strategy while it stays above 24,650. On the upside, Nifty faces resistance at 24,850-24,900/25,000. On the downside, the index could see a significant correction if it falls below 24,650.
Osho Krishan, Angel One
The active involvement of mid and small-cap stocks, as well as heavy-weights and banking sectors, has established a solid foundation and bolstered market sentiment. The dominance of bullish investors was apparent throughout, with their strong advance-decline ratio helping the Nifty index to close the bearish gap on the weekly time frame. Though replicating the same in the upcoming week and conquering another bearish gap on the daily chart around the 24,850-24,950 subzone would be a challenging task, it would require prudence rather than complacency. And once the levels are conquered, we may witness another lifetime high zone in the benchmark. On the lower end, there has been an ascend to the support zone, starting from 24,750-24,700, followed by 24,650-24,600 with anticipation of dips auguring well for the bulls.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
