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    Tech View: Nifty forms two back-to-back red candles. What traders should do next week

    Synopsis

    The weekly charts saw the formation of a long positive candle with upper shadow. The chart pattern remained positive with higher tops and bottoms. Analysts said Thursday’s record high of 18,887 could now be considered a new higher top of the sequence, and present weakness is expected to find a higher bottom in the short term.

    Tech View: Nifty forms two back-to-back red candles. What traders should do next weekShutterstock.com

    As traders booked profits in sync with the global market mood, the headline equity index Nifty formed a small red candle for the second consecutive day on the daily chart, indicating the resumption of minor profit booking in the market from all-time highs.

    The weekly charts saw the formation of a long positive candle with upper shadow. The chart pattern remained positive with higher tops and bottoms. Analysts said Thursday’s record high of 18,887 could now be considered a new higher top of the sequence, and present weakness is expected to find a higher bottom in the short term.

    Nifty is still holding above the short-term support levels.

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

    Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
    The index is trading near the key hourly moving averages as well as near a rising trendline on the hourly chart. 18600 is a key support from where the index can start moving up again. Overall, the short term outlook continues to be positive for a target of 19,000.

    Nagaraj Shetti, Technical Research Analyst, HDFC Securities
    The near-term uptrend status remains intact for Nifty as per smaller and larger time frame charts, and there is a possibility of an upside bounce from the lows in 1-2 sessions. Immediate support is placed at 18550-18450 levels.

    Rupak De, Senior Technical Analyst at LKP Securities
    In the near term, the sentiment is likely to remain sideways, with 18,500-18,800 being the crucial range. A decisive breakout from either band may induce a clean directional move in the market.

    Ajit Mishra, VP - Research, Religare Broking
    Indications are in favour of further consolidation in the index, but the tone would remain positive till Nifty upholds 18,300. And, since all the sectors are participating in the move, traders should utilize this phase to add quality names on dips.

    Amol Athawale, Deputy Vice-President - Technical Research, Kotak Securities
    As the market was in an overbought zone after the recent upsurge, correction was due for sometime and hence investors booked profit in a trading session marked by weak Asian and European cues.

    The recent GDP numbers and GST collections came in line with expectations, but global newsflow will continue to dictate the market trend going ahead. The two immediate triggers - RBI's credit policy next week and the US Fed meeting in mid December on rate front - would determine the investors' mood in the near term.


    (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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