While the trade set-up is in the favour of bulls, prices have entered into a correction phase due to global uncertainty, said Rajesh Bhosale, technical analyst at Angel One.
“Going ahead, this correction, whether in terms of time or price, may continue. Nevertheless, traders should bear in mind that the primary trend remains positive, and such corrections present opportunities to re-enter long positions,” Bhosale said.
In terms of levels, the crucial support levels are around 18450-18400. If there is any improvement in the global situation, the Nifty 50 ideally should rebound from these levels and regain 18600-18700 in the near term.
Today, Nifty 50 ended 0.3% down at 18487.75 points. India VIX ended 3% down at 11.5975 points.
Here’s what other experts have to say on the market trajectory:
Jatin Gedia, Technical Analyst, Sharekhan by BNP Paribas
On the daily charts, we can observe that the Nifty is witnessing weakness in the past couple of trading sessions. We believe that the Nifty is testing the breakout it witnessed from the range of 18000-18400 during the previous week.The daily momentum indicator has a positive crossover. Thus, this dip should be used as a buying opportunity.
Overall, we continue to maintain our positive outlook on the index for a target of 18800 from a short-term perspective. In terms of levels, 18460-18420 shall act as the crucial support zone, while the hurdle zone is placed at 18600-18660.
Subash Gangandharan, Senior Technical and Derivative Analyst, HDFC Securities
On daily charts, we observe that while Nifty has corrected in the last two sessions, the pattern of higher tops and higher bottoms seen since the March 2023 lows has not been disturbed. This indicates that the intermediate uptrend remains intact. We expect the Nifty to find support around the previous swing high of 18459 before again resuming the uptrend. Of course, if this support fails to hold, then a further correction is likely.
Rupak De, Senior Technical, LKP Securities
The Nifty index experienced a limited movement, staying within a certain range throughout the day. However, the closing saw a prevalence of selling pressure. The overall sentiment in the market is expected to remain negative until the Nifty index manages to surpass the 18500 level. If the index fails to move back above this level, it could potentially lead to a correction in the market. On the downside, there is support expected around the 18300-18350 range. Conversely, resistance can be anticipated at the higher end around 18650.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)