Tech view: Nifty breaks bearish pattern, eyes 23,800 upside level. How to trade stocks on Budget day
The bearish pattern of lower tops and bottoms of the last month seems to have reversed, as Nifty closed above the recent lower top of 21st Jan at 23,426 levels. This is a bullish development and eventually, we could see the formation of bullish higher tops and bottoms. The underlying trend of Nifty remains strong. Having surpassed the hurdle of 23,500 levels, bulls could advance towards another resistance of 23,800 levels in a short period of time. Immediate support is at 23,400 levels, said Nagaraj Shetti.
In the open interest (OI) data, the highest OI on the call side was observed at 23,500 and 23,600 strike prices, while on the put side, the highest OI was at 23,500 strike price followed by 23,400.
What should traders do? Here’s what analysts said:
Hrishikesh Yedve, Asit C. Mehta Investment Interrmediates.
From a technical perspective, Nifty crossed its short-term hurdle of 23,430 and formed a strong bullish candle on the daily chart, indicating strength. The index also sustained above its 21-day Simple Moving Average (21-DSMA) at 23,310, making it an immediate support level, while trendline resistance at 23,800 will act as a key hurdle. Traders are advised to adopt a buy-on-dips strategy.
Rupak De, LKP Securities
The Nifty has given a falling wedge breakout, indicating a short-term bullish reversal. The index has also moved above the 21-period EMA, reinforcing the positive momentum. Additionally, the current RSI reading supports a strong upward move in the market. However, much will depend on how market
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