Technical Outlook: Nifty is forming an uptrend on the weekly chart. What traders should do on Monday

On Friday, the headline equity index Nifty formed a small bearish candle with a small bearish shadow on the daily chart and a bullish wave on the weekly chart. Now, the index needs to break above the 18,500 zone to move up towards 18,600-18,881, while supports are placed in the 18,442 -18,250 zone, according to Chandan.

As reflected in India’s VIX fear gauge index, volatility has cooled over the past nine weeks, supporting bulls staying in higher zones. The momentum indicator has reached the descending trend line on the daily timeframe.

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

Rupak De, Senior Technical Analyst

Based on the price chart and the construction of the momentum indicator, we can conclude that the index is on the verge of a strong directional movement in the short term. A break below 18,450 on the lower side could trigger a correction towards 18,100-18,000, while a break above 18,605 on the higher side could lead to a decent rally in the market.

Ajit Mishra, VP – Research, Broking

With a record high, improving wider participation will play an important role in shaping the market trend. In addition, the performance of global markets will continue to weigh on sentiment. We recommend following the trend and focusing on identifying future topics with current leaders.

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by

The benchmark index may hover around the all-time high of 18604 for some time. This will be the mark or break level to be monitored not only from a short-term perspective but also on a final basis that determines the future course of action in the medium-term perspective. The immediate support zone continues to be between 18400-18380.

Nagaraj Shetty, Technical Research Analyst, Securities

The underlying trend of Nifty continues to be positive. Breaking the important overhead resistance this week, Nifty is expected to move towards all-time highs (above 18606 level) by next week. A sustained move above 18600 levels is likely to pull the Nifty towards a new level of 18950 levels in the near term (0.786% Fibonacci extension taken from June 22 low, September 22 high and September 22 higher low as per weekly chart).

(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. They do not reflect the views of Economic Times)