Break of 19,600 may take Nifty to 19,320: Analysts
market may continue this week, and technical analysts are closely watching the pivotal 19,600 level as a decisive point for the current trend. Failing to hold this level could lead the index toward the 19,320 zone, as per their analysis.
Options data for the Nifty index also indicate a bearish sentiment. In contrast, certain stocks, including Maruti, Canara Bank, Berger Paints, REC, PFC, TCS, Asian Paints, and Escorts, have displayed positive setups, said analysts.
CHANDAN TAPARIAANALYST-DERIVATIVES, MOTILAL OSWAL FINANCIAL SERVICES
Where is the Nifty headed? The index made a bearish candle on weekly and daily scales, along with the formation of lower highs — and lower lows on daily chart for the last four sessions.
The major trend is still intact, but till it is below 19,800 zones, some more profit booking could be seen towards 19,600, then 19,350 zones, whereas hurdles are placed at 19,881 and 20,000. Nifty now has major support at the Gann square root of 19,600; the next meaningful level could open towards 19,320 zones below that.
Bank Nifty has formed a big bearish candle on the weekly scale and made lower highs — and lower lows on the daily scale for the last four sessions. Till it holds below 45,000, some more profit booking could be seen towards the next key support at 44,250-44,000 while hurdles are shifting lower at 45,000 and 45,250.
What should investors do? Bullish setups are seen in IT, auto and PSU banks and weak setups in most other sectorial indices.
