Nifty eyes recovery as key support levels hold strong: Dharmesh Shah
«Going forward, again, I believe Doji Candles of the previous day, I think yesterday we had a strong bull candle, going forward we believe 23,300, yes, has been working as a multiple resistance for last few trading sessions but we expect that to surpass and we should be looking for a target of around 23,700 which is again a 200-day moving average,» says Dharmesh Shah, ICICI Direct.
What is the sense on the markets?
Dharmesh Shah: Yes, definitely after a sharp weakness in the last few trading sessions, we see more of a technical pullback happening for the markets. And the most important part was we reverted from the major support of 22,800 which has been holding in last few trading sessions.
Going forward, again, I believe Doji Candles of the previous day, I think yesterday we had a strong bull candle, going forward we believe 23,300, yes, has been working as a multiple resistance for last few trading sessions but we expect that to surpass and we should be looking for a target of around 23,700 which is again a 200-day moving average.
So, being a market too oversold, if you look at the market breadth indicator which is again a good indicator to understand the market that is giving us an indication that maybe pullback is on the cards and we should be looking towards a target of 23,700.
One more point to highlight, key point is that since if you look at the market, the consecutive two months of selling, we are in the third month of the selling.
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