After a gap-up opening, Nifty today formed a small green candle on the daily scale. Chart readers said the index is currently placed at the crucial overhead resistance of around 17150-17200 levels, and the market is now showing signs of an upside breakout of the hurdle.
The lower bottom reversal seems to have confirmed at Monday’s low of 16,828 levels, and one may expect further upside in the short term towards the lower top formation. A decisive move above the hurdle of 17,200 levels is likely to bring sharp upside momentum for the Nifty in the near term. Immediate support is at 16,950 levels, said Nagaraj Shetti of HDFC Securities.
What should traders do? Here’s what analysts said:
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
On the hourly charts, we can observe positive divergence along with a positive crossover on the momentum indicator, which indicates a loss of momentum on the downside and shall provide speed to the current pullback. On the upside, we…