Positive market trends likely to drive Nifty towards 19,800 points: Experts
The sentiment is expected to stay positive as long as it maintains above the critical support level of 19,500, as put writers are likely to offer support at this level, says Rupak De, Senior Technical analyst at LKP Securities.
The Indian benchmark indices ended on a flat note, concluding a highly volatile week ended October 6. The market remained under pressure in the first half of the week amid rising US bond yields, stronger dollar, mixed auto sales data. However, better domestic PMI data, inline RBI policy outcome and falling crude oil prices provided some relief to the market.
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Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas | Expect this pullback to continue till 19,778 – 19,800, where resistance in the form of the 50% Fibonacci retracement level and the 20-day moving average is placed. In the case of a dip towards 19,530 – 19,580, it should be used as a buying opportunity. Expect the Bank Nifty to provide a pullback till 44,800 – 45,000 from the short-term perspective. In case of a dip we it should be used as a buying opportunity.
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Ajit Mishra, SVP - Technical Research, Religare Broking | The recent bounce has certainly eased some pressure but we are now again at the hurdle of the short-term moving average (20 EMA). We need sustainability above the same for a further recovery towards 19,800, else the decline would resume. Traders should remain focused on stock selection and position management until we see clarity over the next directional move.
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Amol Athawale, Vice President - Technical Research, Kotak Securities | Technically, after a sharp fall the Nifty took support near 19,350 and bounced back sharply. The index is trading near the 50-day SMA (Simple Moving Average), and on weekly charts it has formed a Hammer kind of formation which is largely positive. As long as the index is trading above the 50-day SMA or 19,575 level, the positive sentiment is likely to continue. Above the same, it could move up till 20-day SMA or 19,800 and on further upside the index may also continue upsurge till 19,850. On the flip side, a fresh selloff is possible only after the dismissal of 19,575 and below the same, the index could retest the level of 19,450-19,350.
Aditya Gaggar, Director of Progressive Shares | On the weekly chart, the Nifty50 has made a dragonfly doji candlestick pattern which indicates a strong comeback of the bulls and a potential reversal of the trend. The zone of 19,530-19,330 will be a strong support area while on the higher side, the Index has to breach the 19,750-19,800 zone to ensure a reversal of the trend. BankNifty has tested its support level of 43,850 and reversed but it lacks momentum. A convincing close above 44,800 is a must for confirming trend reversal.
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Rupak De, Senior Technical analyst at LKP Securities | Nifty ended the week with a modest gain despite the selling in the banking sector. Overall, sentiment is expected to stay positive as long as it maintains above the critical support level of 19,500, as put writers are likely to offer support at this level. On the upside, resistance is positioned around 19,750-19,800. A strategy of buying on dips would be favorable as long as it holds above 19,500.
