Trading within a range of 18,000-18,200 for the last four days, headline index Nifty today formed a small positive candle on the daily chart with a minor upper shadow, indicating a buy-on-dips opportunity in the market at the highs.
Immediate resistance is seen at 18,650 levels, said Nagar Shetty, Technical Research Analyst, HDFC Securities:
Nifty was trading above its 20-DMA (daily moving average) support, which is now placed around 18,450.
Srikanth Chauhan, Head of Equity Research (Retail), Kodak Securities
The inside body candle on daily charts is indicating non-directional activity and indecisiveness between bulls and bears. The bulls, 18,675 would be the important breakout level to watch out for. And above the same, we can expect a quick uptrend rally up to 18,800-18,835. On the flip side, trading below 18,500 may fuel further weakness up to 18,435-18,400.
Senior Technical Analyst at LKP Securities, Nifty witnessed a lackluster trading session as the index failed to give any directional move. For any meaningful directional move, Nifty needs to go below 18,500 decisively or above 18,700 on a sustained basis. Support below 18,500, is pegged at 18,350/18,200. On the other hand, above 18,700, resistance is visible at 18,900.
Markets are seeing time-wise correction and weak global cues are delaying the recovery. We feel the consolidation may continue for some time. However, buoyancy in the banking pack coupled with buying in select index majors may result in a further rebound. Meanwhile, we recommend continuing with a stock-specific trading approach and focussing on buying opportunities. Head of Technical Research, Sharekhan by BNP Paribas
Nifty witnessed a brief consolidation in the range of 18,500-18,600 in the last couple of sessions and is poised for a recovery. In terms of the price patterns, the index has formed an Ending Diagonal pattern on the hourly chart, whose follow through is expected on the upside. Going ahead, 18,650-18,670 is the immediate resistance zone beyond which fresh momentum can get built up. Overall short-term target continues to be at 19,000 with reversal below 18,500 on a closing basis. The Bank Nifty has taken a strong leap on the upside from the support zone of 43,000-42,900.
Ajit Mishra, VP – Research, Bro king
We may see a bit of consolidation after the recent surge. However, upbeat global cues would keep the tone positive. Besides, improvement in the broader market participation is an added relief. Participants should continue with a positive bias and utilize the pause or dip as a buying opportunity. At the same time, one should not go overboard and stick largely with the index majors and quality midcaps.
The positive chart pattern like higher tops and bottoms is intact on the daily chart, and still there is no indication of any higher top reversal pattern forming at the highs. Nifty, as per weekly chart, has witnessed a sharp upside breakout of crucial resistance at the highs so far. The next upside levels to be watched are around 19,000 in the short term and immediate support is placed at 18,720 levels.
Independent Technical Analyst
Any short-term dip in Nifty is a buying opportunity. As long as Nifty holds above 18,450, we will remain on the long side of the market. Any short-term dip towards 18,600 is a buying opportunity. On the upside, Nifty will see a continued rally towards 19,000-19,200 during the month of December.
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