Tech View: Nifty may find resistance around 21,800-21,850 next week. What should traders do?

Nifty on Friday ended 52 factors larger to type a Doji candle on the each day chart. Analysts say sharp adverse implications cannot be anticipated because the sample has been shaped amidst range-bound motion.

The short-term uptrend standing of Nifty stays intact, however the market is prone to discover resistance round 21,800-21,850 ranges within the coming periods. A decisive transfer solely above 21,850-21,900 ranges might open the following upside goal of twenty-two,200 ranges. Any dips from right here might discover help round 21,500, stated Nagaraj Shetti of HDFC Securities.

What ought to merchants do? Right here’s what analysts stated:

Kunal Shah, Senior Technical & Spinoff Analyst at LKP SecuritiesFollowing a speedy rebound from its positional help at 21,500, bullish exercise has resumed out there, with shopping for curiosity evident throughout dips. The prevailing sentiment is bullish, however Nifty encounters preliminary resistance at 21,750, dealing with promoting strain. Quick help rests at 21,600. A conclusive shut above 21,750 ranges might propel Nifty in the direction of the 22,000 mark, signaling additional upward motion.

Jatin Gedia, Technical Analysis Analyst at Sharekhan

The Nifty opened gap-up nonetheless it was unable to maintain at larger ranges and witnessed intraday correction. On the best way down it managed to carry on to the important thing hourly shifting averages positioned within the vary 21,630 – 21,650 and bounced again to shut with first rate positive factors. Going forward, we anticipate Nifty to commerce inside the vary of 21,500 – 21,850 over the following few buying and selling periods. A decisive break of this vary on both aspect shall set the pattern going forward. Total, the construction remains to be in favor of the bulls nonetheless a consolidation is probably going over the following few buying and selling periods.

Ajit Mishra, Religare Broking

Nifty is prone to spend some extra time inside the 21,500-21,800 zone citing combined cues however the tone is prone to stay constructive. Merchants ought to thus keep their give attention to inventory choice and threat administration. Within the absence of any main occasion, the efficiency of the worldwide indices, particularly US would stay within the focus for cues within the coming periods.(Disclaimer: Suggestions, strategies, views and opinions given by the consultants are their very own. These don’t signify the views of The Financial Instances)