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    Tech View: Nifty forms Doji candle. What traders should do next week

    Synopsis

    Nifty is consolidating near the 20-day SMA and closed above the 14-DMA, suggesting a near-term bullish trend. Besides, the index ended the week above 17800, which again points towards a strong weekly close. Momentum indicator RSI is in a bullish crossover and rising

    Tech View: Nifty form Doji candle. What traders should do next weekETMarkets.com
    Nifty today formed a Doji sort of candle on the weekly charts and negated its lower lows formation of the last two weeks. Now, it needs to hold above 17,850 zones, for an up move towards 18,018 then 18,081 zones whereas supports are placed at 17,777 and 17,650 zones, said Chandan Taparia of Motilal Oswal.

    Fear gauge index India VIX moved down by 2.22% from 13.04 to 12.75 levels. Volatility has been overall falling down from the last nine sessions and now needs to hold at lower zones for market stability.

    Option data suggests a broader trading range between 17400 and 18200 zones while an immediate trading range between 17700 and 18050 zones.

    Nifty is consolidating near the 20-day SMA and closed above the 14-DMA, suggesting a near-term bullish trend. Besides, the index ended the week above 17800, which again points towards a strong weekly close. Momentum indicator RSI is in a bullish crossover and rising.

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

    Amol Athawale, Deputy Vice President - Technical Analyst, Kotak Securities
    For traders now, 17900 would be the immediate breakout level to watch out, above the same the index could move up to 18200. On the flip side, fresh selloff is possible only after the dismissal of 17750. Below the same selling pressure is likely to accelerate and the index could slip till 17650-17500.

    Rupak De, Senior Technical Analyst at LKP Securities
    On the higher end, resistance is visible at 17950-18000; a sustained basis breakout above 18000 may open the gate for 18350-18400. On the other hand, failure to move beyond 18000 may attract selling pressure in the market.

    Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
    On the daily charts, Nifty has been consolidating since the last couple of trading sessions within the range 17740 – 17920. On the upside, the key daily moving averages placed in the range 17870 – 17960 is acting as a stiff resistance and restricting upside. On the downside, the zone of 17800 – 17744 is providing cushion and has been absorbing the selling pressure. The breach of this range shall lead to trending moves in that particular direction. Overall, we expect this range to break on the upside and test the upper end (18100) of the downward sloping channel from a short-term perspective.

    Ajit Mishra, VP - Technical Research, Religare Broking
    The recent move in the Nifty index shows indecisiveness among participants, thus we recommend focusing more on stock selection and trade management. We’re seeing rotational buying in select index majors across sectors while others are still sitting on the sidelines. Traders should align their positions accordingly.

    (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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