Tech View: Nifty forms red candle on daily chart. What traders should do on Monday
Nifty50 closed at 25,356.50, lower by 32.40 or 0.13%.
Nifty fizzled out and closed with a minor loss and barring oil & gas, FMCG and healthcare, all sectors ended in the red as the market gave up its early gains on the last day of the week, said Siddhartha Khemka, Head — Research, Wealth Management, Motilal Oswal Financial Services, while commenting on the day's action.
He expects markets to consolidate in a broader range and recommends investors to remain cautious as major banks around the world will announce their policy statements next week.
What should traders do? Here’s what analysts said:
Hrishikesh Yedve, Asit C. Mehta Investment Interrmediates Ltd.
Nifty started the day on a flat-to-positive note but was unable to sustain above Thursday’s high, resulting in profit booking. Ultimately, the index settled the day on a negative note at 25,357. The volatility index, INDIA VIX, cooled off by 4.79%, settling at 12.55, indicating a drop in market volatility.
Technically, the index formed a small red candle on the daily chart. However, it managed to close above the breakout level of 25,335 on a weekly basis, indicating strength. The 21-DEMA support is currently placed near 24,980. As long as the index holds above 24,980, a “buy on dips” strategy should be adopted. On the upside, the index could test 25,500 and 25,800 in the short term.
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