Even after Nifty’s weak close on Friday, analysts are forecasting the uptrend to continue into the third week. The benchmark closed 0.38% lower at 25,327.05, while Sensex settled 0.47% lower at 82,626.23.
“Nifty on the weekly chart has formed a bull candle with a higher high and higher low signaling continuation of the up move for the third week in a row. Key observation on the daily chart is that Nifty has recently witnessed a bullish crossover of the 20-day and 50-day EMAs, reinforcing the positive short-term outlook”, stated Bajaj Broking Research.
Immediate resistance for the benchmark lies at 25,500-25,600, “A decisive breakout above this range could drive further momentum on the upside towards the 25,900 levels”, the research firm added.
On the downside, key support is placed at 25,100-24,900 levels and Bajaj Broking holds that dips should be used as a buying opportunity.
“We are of the view that the short-term market outlook remains bullish, but due to temporary overbought conditions, range-bound activity may occur in the near future. Hence, buying on dips and selling on rallies would be the ideal strategy for traders”, stated Amol Athawale, VP Technical Research, Kotak Securities.
“Below 25,100/81900, the uptrend could become vulnerable”, the analyst added.