Nifty needs breakout above 23,200 for sustainable recovery, say analysts
The index rose nearly 2 per cent last week to close around 23,050 as technical experts monitor key resistance levels.
The Nifty rose nearly 2 per cent last week to close near 23,050, according to the Economic Times. Analysts suggest that a breakout above the 23,200 resistance level could lead to gains towards the 23,500–23,600 range.
Nagaraj Shetti, AVP of Technical Research at HDFC Securities, said the index has broken above the 22,800 resistance and formed a higher bottom near 22,400. He noted that the index is currently testing resistance at 23,200.
Sacchitanand Uttekar, VP of Research at Tradebulls Securities, said the Nifty has moved above its 20-day exponential moving average and the 22,865 recovery threshold. He noted that while the daily RSI is above 50, the index remains below its declining 50-day EMA near 23,170.
Mehul Kothari, Vice President of Technical and Derivative Research at Anand Rathi Share and Stock Brokers, said a decisive breakout above 23,200 is required for a sustainable recovery. He identified immediate support at 22,600 and 22,400.
For Bank Nifty, Kothari said a breakout above 56,000 could improve sentiment, while falling below 53,000 might cause weakness. He advised traders to avoid aggressive directional positions until a boundary is breached.
