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Nifty formed a small positive candle with a long lower shadow on the daily chart while attempting to stage an upside breakout of the crucial overhead resistance at 17,800 levels. The index is now trading above its 50 and 200-day SMA (Simple Moving Average) and is holding a higher bottom formation on intraday charts, which is largely positive.
However, chartists caution that momentum indicators are hinting at temporary overbought conditions, and range-bound activity could be expected in the near future.
The overall chart pattern of Nifty continues to be positive, and the next upside targets to be watched are around 18,200 levels in the coming weeks. Immediate support is at 17,700 levels, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
The market will be closed Today to observe Ambedkar Jayanti.
Analysts’ Views on Nifty Next Week
Here’s what some of the top analysts had to say about Nifty’s next moves:
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
For bulls, the key support areas now are 17,700-17,600, while 17,900-18,000 would act as a crucial resistance zone for traders. Positive sentiment is likely to continue in Nifty Bank, and for trend-following traders, 41,500 would be the sacrosanct support zone. Above this, it could move up till 42,500-42,700. On the flip side, below 41,500, the uptrend would be vulnerable.
Rupak De, Senior Technical Analyst at LKP Securities
The critical moving averages are sitting comfortably below the current index value, and the trend is likely to remain positive as long as it stays above 17,700. On the higher end, 18,000 will likely act as a crucial resistance.
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
Considering the sharp run-up in the previous nine trading sessions, a consolidation is highly probable. However, it should be considered as a buying opportunity. In terms of levels, 17,860-17,900 is the immediate hurdle, while 17,730-17,700 shall act as a crucial support from a short-term perspective.
On the upside, we expect Nifty to target levels of 18,000.