Tech View: Nifty finds support above 21-EMA. What Traders Should Do on Wednesday
Momentum indicators remain crossover positive, suggesting continued strength. The bullish trend is expected to continue as long as it remains consistently above 21,350. On the upside, Nifty is likely to face resistance from call writers at 21,500. A clear break above 21,500 could potentially trigger a significant market rally. Consolidation is likely to be possible by then, said Rupak De of LKP Securities.
What should traders do? Here’s what analysts said:
Prashanth Tapse, Senior Vice President (Research), Mehta Equities
Following the recent rebound in growth stocks, investors are showing interest in consumer stocks as a negotiation strategy. Technically, Nifty holds support at 21,217-20,989 and resistance at 21,651-22,001, urging investors to boldly explore growth opportunities amidst very bullish market momentum.
Ajit Mishra, Religious Brokerage
We are interested in buying whenever the index falls, which reaffirms our bullish outlook. Defense ie. FMCG and pharmaceutical companies are performing well as expected. However, the participation of interest rate sensitive individuals is essential to trigger the next upward move. Meanwhile, it is important to identify patterns of cyclical buying across industries and place trading positions accordingly.
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