Tech View: Nifty 50 in consolidation mode; what’s the trade set-up for next week?
Nifty 50 ended flat as the Reserve Bank of India’s policy announcements had no major fireworks.
The central bank left policy rates unchanged and also retained its stance of focussing on withdrawal of accommodation. The Nifty 50 ended flat at 22513.70 points, and on daily charts, it’s suggesting that the index is consolidating after a sharp run-up, which is a healthy sign.
“We expect the consolidation to breakout on the upside and thus minor degree corrections should be bought into. On the upside, we expect levels of 22,700, which is the upper end of the rising channel. On the downside, crucial support is placed at 22,400–22,350,” said Jatin Gedia, technical analyst at Sharekhan by BNP Paribas.
What do other market experts say about the trading set up for next week?
Rupak De, Senior Technical Analyst, LKP Securities
The index remained sideways throughout the session, reflecting a pause in the market trend, following the formation of a hanging man pattern. The sentiment may continue to remain sideways due to the lack of a directional breakout or pattern formation.
At the higher end, 22,650 might prove to be a crucial resistance level. A fresh rally is not anticipated as long as the index remains below 22,650. On the lower end, support is evident at 22,300; if breached, the index might decline towards the 22,000-21,900 range.
Ajit Mishra, SVP — technical research, Religare Broking
It turned out to be a muted session on Friday as Nifty oscillated in a narrow range and ended almost unchanged. The recent
