Having reached the overhead resistance of around 23,300-23,400 levels, there is a possibility of minor dip in the market from the highs in the short term and that could be a buying opportunity. Immediate support is at 22,900 levels, said Nagaraj Shetti of HDFC Securities.
What should traders do? Here’s what analysts said:
Tejas Shah, JM Financial & BlinkX
Technically, the rebound from around the 200-day exponential moving average (DEMA) of 21,250 has been rather swift and “V” shaped. This recovery has got the index back to the point (23,338) from where the fall started a few days back. Also based on multiple studies, the 23,350 number holds a lot of importance and if the market has to extend the recovery process then this needs to be crossed. There is a possibility of some sideways consolidation/minor correction in the next one or two days after a sharp rally, which was witnessed recently. Support for Nifty is now seen at 23,000 and 22,750-800 levels. On the higher side, immediate resistance for Nifty is at 23,350 levels and the next resistance is at 23,500 mark. Overall, it is advisable to stay conservative with longs at this juncture.
Jatin Gedia, Sharekhan
On daily charts, we can observe that Nifty has been inching higher after a sharp decline on Tuesday. It has recovered all the lost ground and is within touching distance of previous all-time high of 23,338. The V-shaped recovery has put the structure in favour of bulls and dips towards the support zone of 22,800 – 22,700 should be used as a buying opportunity. On the upside, the psychological level of 23500 is likely to attract some profit booking at higher levels.
Rupak De, LKP Securities
Going forward, the market remains a buy on dips as long as 23,000 is not broken. On the higher end, the index might move towards 23,500-23,600. On the lower end, profit booking might occur only below 23,000.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
