Tech View: 100 DEMA to play key support for Nifty, buy on dips recommended. How to trade on Friday
Nifty started Thursday on a negative note and stayed under pressure throughout the day, settling negatively at 24,549 levels. The volatility index India VIX dropped by 0.58% to 13.19 levels, indicating a decrease in market volatility. Technically, on the daily chart, the index formed a small red candle.
The index has retested the rounding bottom pattern breakout, which is around 24,540. Overall, Nifty witnessed a time-wise correction during the past few days. Once this timewise correction is over, the index is anticipated to resume its upward journey. On the downside, 100-Day Exponential Moving Average (100-DEMA) support is placed near 24,350. As long as the index sustains above it, traders are advised to adopt buy-on-dips strategy. On the upside, the index might test the levels of 24,800-25,000 in the short term, said Hrishikesh Yedve of Asit C. Mehta Investment Interrmediates.
In the open interest (OI) data, the highest OI on the call side was observed at 24,600 and 24,700 strike prices, while on the put side, the highest OI was at 24,500.
What should traders do? Here’s what analysts said:
Jatin Gedia, Mirae Asset Sharekhan
On the daily charts, we can observe that the Nifty has been stuck in a narrow range of 24,500 – 24,800 since the past five trading sessions. A decisive move above 24,750 shall suggest that the next leg of upmove has resumed. On the downside, 24,500 – 24,450 is the crucial support zone. As far as derivative data is concerned, 23,000 PE and 26,000 CE have the highest build-up for the 19th
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