Tech View: Nifty formed a bearish candle. What should investors do on Thursday?

While the MACD remains in buy mode, the equity index Nifty formed a strong bearish candle and a bearish engulfing pattern on a daily scale, limiting its upside momentum.

Analysts say the index’s moving averages are also starting to inched up.

“Now it has to be above 17,580 zones to rise to 17,777 and 17850 zones, while support is located at 17,580 and 17,442 zones,” Chandan said.

of the .

Options data shows a trading range between 17,450 and 17,800 zones.

What should traders do? Here’s what analysts say:

Rupak De, Senior Technical Analyst at
Intraday, Nifty remains above previous consolidation highs, showing increased optimism. In the short term, this trend is expected to continue. On the higher side, resistance is visible at 17,950. At the bottom, support is located at 17,550/17,400.

Deepak Jasani, Head of Retail Research, Securities
Nifty is experiencing a small retracement following the recent bull run. 17.778-17.811 could be resistance for Nifty in the near term, while the 17,568-17,584 band could provide support.

Manish Shah, Independent Trader and Coach
The larger degree trend since the last three months is sideways between 18,100-16,800. As such, the main hurdle for Nifty is 18,100. If Nifty moves above 18,100, expect it to show a quick bounce from there.

Ajit Mishra, VP – Research, Brokerage
While the global market is yet to show any clear trend, recent buying into heavyweight stocks, especially from the banking package, has lifted sentiment. We could see consolidation in the index ahead, but the tone is likely to remain positive. The focus should be on identifying stocks from sectors participating in the move without losing focus on risk management, citing volatile global markets and prevailing earnings seasons.

(Disclaimer: The recommendations, suggestions, views and opinions expressed by experts are their own. They do not represent the views of The Economic Times)


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