Tech View: Sell-on-rise mode switched on till 24,800. Here’s how to trade Nifty next week
Nifty on Friday ended 293 points lower to form a reasonable negative candle on the daily chart, indicating a short-term top reversal pattern for the index at the new high of 25,078 level.
The short-term trend of Nifty is down, but the near-term uptrend status of the market is intact. There is a possibility of some more weakness in the coming sessions down to 24,600-24,500 levels before showing any upside bounce from the lows. Immediate resistance is at 24,900 levels, said Nagaraj Shetti of HDFC Securities.
What should traders do? Here’s what analysts said:
Tejas Shah, Technical Research, JM Financial & BlinkX
Nifty is facing stiff resistance around the psychological level of 25,000 on an immediate basis and we believe that the index would further outperform only if it is able to decisively close above this resistance level or else the consolidation is likely to continue in the range of 24,500 to 25,000 levels. Support for the index is now seen at 24,700 and 24,450-500 levels. On the higher side, immediate psychological resistance for Nifty is at 25,000 and the next crucial resistance is at 25,250-300 levels. Overall, it would be interesting to see whether the follow-up selling occurs this week or not.
Rupak De, Senior Technical Analyst, LKP Securities
Nifty has slipped sharply amid a global sell-off. Technically, it has drifted down after forming a spinning top on the daily timeframe. The RSI indicator has turned downward, indicating a bearish crossover. The market appears to be favoring «sell on rise» traders as
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