The Nifty 50 has seen consolidation throughout session after the US Federal Reserve, as expected, maintained benchmark interest rates at 5.25-5.5 percent, and closed moderately higher on May 2. The consolidation is expected to continue further with immediate support at 22,500 level, but overall, the bullish undertone remains unchanged, hence traders are advised to continue with buy on dips strategy with a target of 22,800, experts said.
The Nifty 50 started off the day lower at 22,568, which was also its day’s low and hit an intraday high of 22,711 amid volatility in afternoon. Finally, the index closed at 22,648, up 43 points and formed bullish candlestick pattern on the daily charts.
“Despite insignificant changes in the price action as Nifty stayed near its last closure, the potential for growth is evident as sustainability at the higher grounds showcases a bullish undertone,” Osho Krishan, senior analyst – technical & derivative research at Angel One said.
Technically, he feels the immediate support is likely to shift higher towards the 22,550-22,500 mark, followed by 22,400, coinciding with 20 DEMA. While on the higher end, the highs of 22,780-2,2800 remain a daunting task for the bulls to conquer, post which only we could eye for the 23,000 milestone for Nifty, he said.
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