What should traders do? Here’s what analysts said:
Rupak de, LKP Securities
The index closed significantly higher from the day’s low, driven by buying interest at the lower end of the range. However, sentiment remains weak as it failed to reclaim the key Fibonacci retracement level. Additionally, the index continues to trade below critical moving averages, reinforcing the overall bearish undertone. In the short term, the index is likely to remain a sell-on-rise candidate unless it decisively crosses above 23,150 on a closing or sustained basis. On the downside, support is placed at 22,800.
Hrishikesh Yedve, Asit C Mehta Investment Interrmedates
Technically, on the daily scale, Nifty has formed a bullish belt hold candlestick pattern near multiple support zone, indicating strength. As long as the index holds 22,725, a buy-on-dips strategy remains favorable. The 21-Day Simple Moving Average (DSMA) at 23,240 acts as an immediate hurdle, and a decisive move above 23,250 could confirm a near-term bottom reversal.
Rajesh bhosale, angel one
After an eight-day losing streak, Nifty finally posted gains, reaffirming strong support around 22,800. From a technical standpoint, early signs of a potential double-bottom formation on the daily chart suggest a solid base at this level. We have been tracking a Falling Wedge pattern connecting the major lows of August and November. However, a closer look at recent price action reveals another Falling Wedge on a shorter timeframe, linking the lows of November and January. Looking ahead, strong support is evident at every 100-point interval, ranging from 22,800–22,700 (lower end of the wedge) to 22,600–22,500, which coincides with the 127% retracement of the early February rebound. Additionally, a two-point positive divergence on the RSI Smoothened suggests a potential shift towards positivity. Given these factors, we do not anticipate significant downside risks, and the bulls may attempt a recovery in the near term. Therefore, we advise traders to avoid panic selling and refrain from initiating fresh short positions. Instead, any dips can be viewed as opportunities to accumulate quality names in a staggered manner.That said, while we don’t want to sound too gung-ho, we prefer to take one step at a time. Immediate resistance is placed at 23,250, aligning with the 20-day EMA and the intraday high on the hourly chart, while the upper boundary of the Falling Wedge near 23,400 remains a critical hurdle.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
