Technical View | Nifty defends 18,600 amid range-bound trade, consolidation likely to continue

The Nifty ended flat amid volatility on December 5, as the Reserve Bank of India started its three-day monetary policy meeting, the last for the year 2022, with the central bank expected to moderate the pace of the rate hike.

The index opened a tad higher at 18,719 and moved in a 100-point range through the day. It closed at 18,701, up 5 points and formed a Doji pattern on the daily charts, indicating indecisiveness among bulls and bears.

 

As long as Nifty holds 18,600-18,500, there is no major cause of concern as the index is expected to move towards the 19,000 mark once the RBI meeting is over, experts said.

“After the early morning selloff, the Nifty took support near 18,600 and reversed sharply. However, the short-term texture of the market is still non-directional. We are of the view that 18,600 could act as a sacrosanct support zone for the market,” Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities said.

If the index trades above 18,600, it can retest 18,800-18,850 in the near future. A slip below 18,600, can take the index to 18,500-18,450, the market expert said.

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