Tech View: Nifty momentum indicators blink red. What traders should do next week

The momentum indicator suggests bearish momentum in the near term.

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

Rupak De, LKP Securities

Immediate support is situated at the 50DMA, currently at 21,900, which is expected to provide support for the Nifty. A decisive drop below 21,900 could lead to a sharp decline in the index. On the upside, resistance is observed in the range of 22,200-22,250.

Jatin Gedia, Sharekhan

On the daily charts, we can observe that Nifty has managed to hold on to the support zone of 21,900 – 21,860 as of Friday. The 40-day exponential average (21970) absorbed the selling pressure. So, until this zone is held, we can expect the upside momentum to resume. In terms of levels, 22,215 – 22,250 is the immediate hurdle zone while 21,900 – 21,860 is the crucial support.

Tejas Shah, Technical Research, JM Financial & BlinkX

Nifty is finding support around the psychological support of 22,000 on a closing basis for the past few days and there is clearly a tug-of-war between the bulls and the bears for this make-or-break support level. We continue to work with 21,850 – 22,000 as an important support zone for the next couple of days.

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