The current minor weakness or consolidation move could result in the formation of another higher low at the lows. Therefore, the current weakness in the range move could be a buy-on-dip opportunity, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
There is a possibility of further consolidation or minor weakness for the next 1-2 sessions before showing a rebound from the higher lows. Immediate support is at 17900 levels.
What should traders do? Here’s what analysts said:
Rahul Ghose, Founder and CEO – covered
Both indices going to expiry tomorrow have mixed open interest data as Nifty OI data shows more call open interest, while Bank Nifty OI data indicates more puts are being written. Indecision, due to the outcome of the Fed meeting scheduled for later in the day. After every healthy rally, consolidation is always a good sign.
Rupak De, Senior Technical Analyst at LKP Securities
Sentiment remains positive as the index held above 18,000. In the near term, the index is likely to remain in the 18,000-18,200 range. A decisive move above 18,200 could bring the index around 18500.
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
On the daily charts, we can see that the Nifty has been trading around the 18100 mark for the past two sessions. The level coincides with the 61.82% Fibonacci retracement level of the fall from 18889 to 16828, which makes it a crucial level in the short term and could be one of the reasons for the consolidation since the last two trading sessions. negotiation. The Bollinger Bands are contracting and the hourly momentum indicator has a negative crossover, also suggesting consolidation is likely. Overall, the uptrend is still intact and this consolidation should be seen as an opportunity to create new long positions.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
As long as the index is above 18050, the uptrend formation is likely to continue. Above the same, the index could go up to 18200-18250. On the other hand, a quick short-term correction is possible if the index slips below 18050, and at the same time it might retest the 17950-17925 level.
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts belong to them. These do not represent the views of The Economic Times)