Break of 19,500 to weaken Nifty further: Analysts
Nifty to sustain above the 19,500 mark to extend Friday’s gains. However, if the index falls below 19,500, analysts anticipate the possibility of additional selling pressure, potentially leading to a decline to 19,200 level.
For traders considering long positions, stocks like Bajaj Finance, DLF, Granules, Grasim, Sun Pharma, Hero Motocorp, NTPC, and Tata Power are worth considering.
VIRAJ VYAS TECHNICAL & DERIVATIVES ANALYST, ASHIKA STOCK BROKING
Where is Nifty headed? Nifty has witnessed a corrective spell last week after touching life-highs in mid-September.
While the corrective move has retraced faster than the swing move from 19,250 to 20,200, the index has witnessed an inside bar (Bullish Harami) formation. This pattern suggests potential bullish momentum in the upcoming week, significantly if the index surpasses 19,800. Keeping an eye on critical support around 19,500 is crucial.
If breached, it could lead to a substantial corrective move with targets around 19,200- 19,250. Furthermore, the index trades below the 21-day exponential moving average of 19,715, signifying near-term bearishness. Any attempt at recovery is likely to face resistance around this level.
What should investors do? The medium-term bullish sentiment remains unaffected as long as the 19,000-19,200 zone holds. This presents an opportunity for investors to use dips to accumulate quality stocks. The broader market is strong, suggesting potential for continued stock-specific rallies and notable sectoral rotation.
