Momentum indicators maintain a positive crossover, suggesting continued strength. The bullish trend is expected to continue as long as it remains consistently above 21,350. On the upside, Nifty is likely to encounter call writer resistance at 21,500. A decisive break above 21,500 could trigger a significant market rally. Rupak De of LKP Securities said that until then, consolidation is likely.
What should traders do? Analysts say:
Prashanth Tapse, Senior Vice President (Research), Mehta Equities
Following the recent rally in growth stocks, investors are turning to consumer stocks as a bargaining strategy. Technically, Nifty continues to see support at 21,217-20,989 and resistance at 21,651-22,001, encouraging investors to boldly explore growth opportunities amid the market’s ultra-bullish momentum.
Ajit Mishra, Religare Broking
Every time the index falls, buying interest increases, which reaffirms our bullish view. Defensive biz. FMCG and pharmaceutical companies are performing well as expected. But to trigger the next bull market, the participation of those who are sensitive to interest rates will be essential. On the other hand, it is important to identify rotational buying patterns between sectors and place trading positions accordingly.
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