The momentum indicator maintains a positive crossover, suggesting continued strength. The uptrend is likely to persist as long as it remains consistently above 21,350. On the upper side, Nifty is likely to meet resistance from call makers at 21,500. A definitive breakout above 21,500 could potentially trigger a substantial market rally; by then, consolidation seems likely, said Rupak De of LKP Securities.
What should traders do? Here’s what the analysts say:
Prashanth Tapse, Senior Vice President (Research), Mehta Equities
After the recent rally in growth stocks, investors are interested in consumer stocks as a trading strategy. Technically, Nifty continues to enjoy support between 21,217 and 20,989 and resistance between 21,651 and 22,001, prompting investors to remain bold in exploring growth opportunities amid an extremely bullish market.
Ajit Mishra, Religare Brokerage
We see buying interest with each decline in the index and this reaffirms our bullish view. Defensive vision. FMCG and pharmaceuticals are doing well, as expected. However, the participation of rate-sensitive countries would be essential to trigger the next stage of hike. At the same time, it is essential to identify the rotating buying pattern across sectors and place trade positions accordingly.
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