Nifty Recovers After 5 Days of Consolidation. What Investors Should do on Friday

As crude oil prices tumbled, domestic equity index Nifty broke out of a five-day consolidative move to recover smartly by 174 points. Nifty broke above the recent high of 17,777 easily, and now analysts say the next tough resistance is at 17,992, while 17,651 could be the support.

Given the robust FII flows, the index may capitalize on today’s solid rebound on Friday and aim for the 18,115 mark. Market participants would be closely tracking any cues from US Federal Reserve Chair Jerome Powell’s speech today.

Here’s what analysts say:

Chandan Taparia, Motilal Oswal Financial Services

Nifty formed a Bullish candle on the daily scale and closed above the immediate hurdle at 17,777 zone. Now, it has to hold above 17,777 zone for an up move towards 18,000 and 18,200 zones whereas the supports are placed at 17,667 and 17,550.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The short-term trend of Nifty continues to be positive. Presently, the Nifty is placed at the crucial juncture of 17,800 levels (upper range and resistance of down trend line). Hence, a sustainable move above this area is likely to open sharp upside momentum towards 18,200 levels in the near term. Immediate support is at 17,650 levels.

Palak Kothari, Senior Technical Analyst, Choice Broking

Nifty has given a breakout of rectangle formation and formed a bullish candle on daily charts, suggesting strength in the counter. The index has given a breakout of its resistance level. Crossing 18,000 levels can lead to more upside.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

For trend following traders, the 20-day SMA at 17,650 would act as a key support level. Above which, the index could rally till 17,900-18,000. On the flip side, below 17,650, bulls may prefer to exit from long positions.

Amit Trivedi, CMT, Technical Analyst – Institutional Equities, YES Securities

Since 19th August, Nifty has been failing to provide a close above 17,800. Hence, follow-up action needs to be closely watched out as sustenance above 17,800 is essential to regain required momentum on the upside. (*)

Source: Times