Tech view: Nifty breaks 25,500 resistance, forms long bull candle. How to trade on Monday

The Nifty fashioned a protracted bull candle, which signifies a decisive upside breakout of the vary motion witnessed within the final 4-5 periods. The Nifty has damaged above the vary in addition to the development line resistance round 25,500 ranges.

A protracted bull candle was fashioned on the every day chart. The short-term development of Nifty is sharply constructive. Having surged up in a single session on Friday, there’s a risk of consolidation/breather sample within the brief time period, earlier than transferring up additional. Subsequent upside targets as per Fibonacci extension to be watched round 26,250. Fast help is at 25,650, mentioned Nagaraj Shetti of HDFC Securities.

Within the open curiosity (OI) information, the very best OI on the decision facet was noticed at 25,800 and 26,000 strike costs, whereas on the put facet, the very best OI was at 25,700 strike worth adopted by 25,600 and 25,800.

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

Jatin Gedia, Sharekhan

On the every day charts we are able to observe that the Nifty has been consolidating across the 24,200 – 24,150 vary the place the 40-day common is positioned. The construction remains to be weak and momentum indicators additionally having a destructive crossover, which can be supporting our bearish stance. Incase of a spike in direction of the important thing transferring averages 24,250 – 24,300, it needs to be used as a promoting alternative for targets of 23,890 – 23,600. On the upside, 24,300 is the instant hurdle from a brief time period perspective.

Tejas Shah, JM Monetary & BlinkX

The Nifty index additionally closed above the essential resistance zone of 25,500-550 this week and we anticipate an upwards trending exercise to proceed. The Nifty ought to transfer in direction of the following psychological resistance of 26,000 both repeatedly from the present ranges or could also be after a minor dip. Assist for Nifty is now seen at 25,700 and 25,500-550. On the upper facet, the following psychological resistance is at 26,000 mark. Total, extra follow-up power may be anticipated primarily based on Friday’s buying and selling session.

(Disclaimer: Suggestions, options, views and opinions given by the specialists are their very own. These don’t symbolize the views of Financial Occasions)