The short-term trend of Nifty remains choppy with alternative candle formations like bull and bear. A sustainable move above the immediate resistance of 21800-21850 levels could open a sharp upside towards another resistance of 22000-22100 levels in the near term, said Nagaraj Shetti of HDFC Securities.
Domestic equity indices were muted on Friday and logged weekly losses, weighed down by financials and consumer stocks, as investors digested the fading likelihood of early rate cuts in India and the United States.
Nifty on Friday ended 160 points higher to form a Doji candle on the daily chart as the index reclaimed its short-term moving averages but lacked decisiveness. As long as the sharp opening downside gap of Wednesday remains open at 21,970, there is a higher probability of a ‘sell on rise in the market for the short term. Immediate support is at 21,550 level, said Nagaraj Shetti of HDFC Securities.
Nifty on Thursday ended 110 points lower to form a high-wave type candle pattern on the daily chart and slipped below the rising trendline on the daily chart, suggesting a bearish trend reversal. ​Having declined sharply, there is a possibility of a pullback rally in the short term, which is expected to be a ‘sell on rise opportunity.
Ajit Mishra of Religare Broking, said, "The underperformance of the banking majors is largely weighing on the sentiment amid consolidation, and a decisive close above 21,800 in Nifty would prompt the next leg of the up move. Meanwhile, we feel it is prudent to prefer defensive viz. FMCG, pharma and stay selective in others."