Nifty on Wednesday ended flat with a gain of just one point and formed a small negative candle with a lower shadow on the daily chart ahead of the RBI policy outcome tomorrow.

The short-term trend of Nifty continues to be positive. There is a higher possibility of an upside breakout of 21,950-22,000 mark in the short term. Immediate support is at 21750, said Nagaraj Shetti of HDFC Securities.

What should traders do? Here’s what analysts said:

Ruchit Jain, Lead Research, 5paisa.com

In the last few days, Nifty has traded within a broad range where 22,127 has seen resistance as it coincided with the previous swing high of mid-January and that hurdle has not been taken out yet. On the other hand, the 20-DMA which is placed around 21,660 is the important support to watch. FIIs have covered some of their short positions in the index futures segment which were short-heavy at the start of the series. However, around 63 percent of their positions are still on the short side. It seems that the index is in a consolidation phase and awaiting a breakout from the range of 22,127-21,660 for any directional move. The reaction post the RBI policy will be important to watch as a breakout on either side of the above-mentioned range will signal the next directional move. Traders are advised to stay cautious for now and trade in the direction of the breakout.

Osho Krishan, Angel One

From a technical standpoint, the time-wise correction remains static, with no clarity in the trend and Nifty being confined in a slender range. Reiterating to our commentary, 22,000-22,100 remains a daunting task for the bulls, and this needs to be conquered decisively to trigger the next round of rallies in the index. Meanwhile, on the lower front, a dip below 21,800-21,750 could further aggravate the room of profit booking towards the 20 DEMA, placed near the 21,670 subzone on an immediate basis. Till then, a range-bound move could be anticipated with buying traction around the support areas while cooling off near the mentioned resistance zone.

Sheersham Gupta, Rupeezy

The short-term trend is still on the upside as Nifty has been forming higher highs and higher lows on the 30-minute timeframe. The call option premiums at the ATM are significantly higher than the put option premiums for the weekly expiry. With supportive global cues and a fall in the Dollar Index, an upmove from here is more likely.

Jatin Gedia – Technical Research Analyst at Sharekhan

On the upside, 22,000 – 22,050 is acting as a stiff resistance while the key hourly moving averages placed in the range 21800 – 21900 have been absorbing all the selling pressure. The Nifty needs to decisively move beyond this narrow range for the trending moves to begin on either side. Until then, stock-specific action and sector rotation is likely to continue. Key support levels are 21730 – 21680 while the immediate hurdle zone is placed at 22000 – 22053.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

(You can now subscribe to our ETMarkets WhatsApp channel)

(What’s moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Download The Economic Times News App to get Daily Market Updates & Live Business News.

Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price


Source link