Tech View: Nifty charts signal more consolidation ahead. Here’s how to trade on Tuesday
Nifty ended Monday’s range-bound session 31.5 points higher to form a small red candle on the daily chart, which signalled hesitation after Friday’s upside breakout.
The short-term trend of Nifty continues to be positive. Having placed at the key overhead resistance around 24,700, there is a possibility of some more consolidation or minor dip in the next 1-2 sessions, before showing another round of upside breakout.
Immediate supports to be watched at 24,400 levels, said Nagaraj Shetti of HDFC Securities.
What should traders do? Here’s what analysts said:
Osho Krishan, Senior Analyst — Technical & Derivatives, Angel One
The market breadth clearly favoured bulls with their dominant performance in the Advance-Decline ratio reflecting a robust market undertone. However, the benchmark index stayed in a slender range, hovering within the bearish gap on the daily time frame chart. A decisive breakthrough is expected to have a significant impact on the momentum, providing a clearer picture of potential future market movements.
It is anticipated that 24,700 will serve as the next important resistance for Nifty, followed by 24,800-24,850. Additionally, the 20-day EMA positioned around the 24,390 zone is projected to act as a supportive barrier, helping to mitigate any minor blips in the comparable period.
Tejas Shah, JM Financial & BlinkX
The technical structure of Nifty is relatively stronger than Bank Nifty. The Nifty index also closed above the crucial resistance zone of 24,350-400 for two consecutive days, which is
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