nifty technical charts: Tech View: Nifty forms bearish engulfing pattern on charts. What traders should do next week

Nifty on Saturday ended 51 points weaker to form a negative candle engulfing the previous session’s bullish candle. On the weekly charts, a bearish engulfing pattern was seen.

The short-term trend of Nifty remains choppy. Having faced weakness after a small rise on Saturday signalled a weak bias for the market ahead. At the higher levels, the market could encounter strong overhead resistance around 21,750-21,850 levels and on the downside it could find support around 21,300 levels in the near term, said Nagaraj Shetti of HDFC Securities.

Next week is a truncated one following a holiday on Monday on account of the Ram Mandir inauguration in Ayodhya while Friday is Republic Day.

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

Ajit Mishra, SVP – Technical Research, Religare Broking

Indications are in favour of further consolidation in the index. Thus traders should maintain their focus on stock selection. All key sectors, barring banking, are still holding strong. However, earnings announcements are keeping volatility high, so keep a check on aggressive positions and maintain a clear exit plan in place.

Om Mehra, SAMCO Securities

Despite persistent attempts to breach crucial resistance each of them resulted in a sell-off. The market exhibited a consolidative trend within the 21,500-21,750 range, indicative of a sideways movement going ahead. Weekly support stands firm at 21,400 level while the upper Bollinger band poses resistance at 21,850.

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