Technical Outlook: The headline index NSE Nifty50 may breach 18,000 levels soon and reclaim 18,400 at the upper side in the coming sessions as the overall sentiment of the equity markets is strong and it will continue to be the same mainly driven by positive global markets, several analysts believe.

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Nifty is in strong bullish momentum, having witnessed a breakout of a downward-sloping channel, Pravesh Gour, Senior Technical Analyst, Swastika Investmart said, expecting the benchmark index to move towards the 18,100-18,200 levels once it breaches the 17,880-mark with support at 17,750–17,725.

The frontline index has closed above 17800 levels in the last two consecutive sessions, where the 100-DMA of 17880 is an immediate hurdle, the analyst at Swastika Investmart said in his comment.

“Markets have finally witnessed a reversal, after spending nearly four months in a corrective phase and now we’re eyeing the 18,100+ in Nifty,” Ajit Mishra, VP - Technical Research, Religare Broking.

He further said that there could be some intermediate consolidation first however the tone is likely to remain positive and the 17,400-17,600 zone would act as strong support in case of any dip.

Though most sectors are contributing to the move on a rotational basis, Mishra reiterated his preference for banking, financials, FMCG and auto and suggest picking selectively from others. 

The Nifty is currently trading above its short-term moving averages that is 55-day, and 100-day, indicating the sustainability of an ongoing bullish trend, Arvinder Singh Nanda, Senior Vice President, of Master Capital Services said.

“We expect prices to face an immediate hurdle near 17900-18000 which if broken decisively will take such advance further higher towards 18200 and then 18400,” Nanda said in his technical outlook.

Considering the ongoing technical developments, buying on the decline will still remain in favour, and any correctional fall for 17,500 will attract fresh buying, the Senior VP of Master Capital Services said.