Dalal Street Corner: Nifty testing resistance at 18000 for 2nd day in a row – what investors should do on Wednesday

The Indian markets concluded Tuesday’s session with a minor cut, as both the benchmark indices — Sensex and Nifty50 — held key levels 60400 and 18000. The financial, banking, metal, and FMCG stocks dragged the market most at the closing today.

The majority of the analysts see the Nifty closing above 18000-mark as a positive sign and its testing resistance at the upper side. The index is likely to surge the 18400-18600 mark with support at 17600.

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In this regard, Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said, “The Nifty has closed above 18000, which is a positive sign. However, it is still indecisive and is facing resistance at higher levels.”

According to Hathiramani, “If the index sustains at the said levels, the markets can scale up to higher to 18400 and then 18600, with a good support at 17600 and hence long positions can be accumulated for higher targets.”

Similarly, Vijay Dhanotiya, Senior Research Analyst at CapitalVia Global Research Limited pointed out, “The market suggests that sustaining above 18000 will be an important level for the market to stay positive in the short term.”

“If the index is able to sustain the level of 18000, the market can witness a positive momentum which can lead to higher levels near 18250. The momentum indicators like RSI and MACD indicate positive momentum in the market,” he added.

Rohit Singre, Senior Technical Analyst at LKP Securities expecting further growth in the Nifty index said, “The index has formed a strong base around 18000 mark and the market witnessed a good pull back from the said levels only going forward also the 18000-mark, will act as fantastic support.”

He added, “if the index managed to hold above the 18000-mark one can expect the next move towards the 18200-18300 zone on a very quick basis, the overall structure is still positive and buy on the dip."