Technical analyst Hunny Tarika of Fairwealth Securities said that Nifty witnessed good consolidation between 3300-3400 before moving upward to mark its closure above the 200 DMA of 3400.

Tarika said that stock traders are advised to be careful as there were low upside volumes on Thursday & Friday trading sessions.

He added that Nifty is shaping a pessimistic divergence in an overbought region. Those holding long positions should keep tracking their stop losses and any new position should be taken only with strict stop loss.

Nifty hit a low of 3296 that would currently act as a key point in market moving ahead any closing below this level would hint a short term down trend.

He further said that resistance to the up move in Nifty is seen at 3510-3530 that turns out to be the recent top and 50 Weeks Moving Average (3533).

Support for the Nifty is at 3400 (200 DMA) and then 3296.

All the information and opinions mentioned above are purely based on Technical Analysis.