Hitting the overhead resistance near 23,300-23,400 levels may see the market move down slightly from the highs in the near term, which could provide a buying opportunity.Nagaraj Shetty of HDFC Securities said immediate support is at 22,900 levels.
What should traders do? Here’s what analysts say:
Tejas Shah, JM Financial & BlinkX
Technically, the bounce from the 200-day Exponential Moving Average (DEMA) around 21,250 was pretty swift and “V” shaped. This recovery has taken the index back to the point (23,338) where the decline began a few days back. Also, based on multiple surveys, the number 23,350 is very significant and needs to be crossed if the market needs to extend the recovery process. After the sharp rise seen recently, a sideways consolidation/small correction is likely to occur in the next 1-2 days. Support for Nifty is currently seen at 23,000 and 22,750-800 levels. On the upside, immediate resistance for Nifty is at 23,350 level and the next resistance is at 23,500 level. Overall, I would suggest being long and conservative at this point.
Jatin Gedia, Sharekan
The daily chart shows that Nifty is inching up after Tuesday’s sharp drop. It has recovered all the lost ground and is within reach of the all-time high of 23,338. The V-shaped recovery has favoured the bulls and any dip towards the support zone of 22,800-22,700 should be utilised as a buying opportunity. On the upside, the psychological level of 23,500 could attract profit booking at higher levels.
Rupak De, LKP Securities
Going forward, the market will maintain a buying stance on dips unless it breaks below 23,000. On the upper end, the index can move towards 23,500-23,600. On the lower end, profit booking can occur only if it breaks below 23,000.
(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. They do not necessarily represent the views of The Economic Times)
