Tech View: Nifty bulls eye 22K next week. What traders should do
Nifty on Friday ended 247 points higher to decisively break out of the 21,500-21,850 range on the upside.
As long as the index is trading above 21,750, the breakout texture is likely to continue. Above the same, the market could move up till 22,100-22,200. On the flip side, below 21,750 traders may prefer to exit from the trading long positions. Below which, the index could retest the level of 21,650-21,575, said Amol Athawale of Kotak Securities.
Momentum indicator RSI has also provided a buy crossover, further confirming the bullish sentiment in the market.
What should traders do? Here’s what analysts said:
Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities
Nifty exhibited significant strength, securing a notable breakout on the daily chart as it surpassed the key resistance level of 21,800. This bullish move positions the index for potential short-term targets of 22,000 and 22,200. Traders are advised to consider buying opportunities on any dips toward the support level.
Jatin Gedia, Sharekhan
Nifty opened gap-up and traded with a positive bias throughout the day to close with gains of ~260 points. On the daily charts, we can observe that the Nifty has decisively broken out of the 21,500 – 21,850 range on the upside. The breakout suggests a resumption of trending moves on the upside. We expect the index to target levels of 22,000 immediately and above that 22,300. On the downside, the zone of 21,750 – 21,700 shall act as an immediate support as per the role reversal principle.
Ashwin Ramani, SAMCO Securities
Strong put writing (bulls’ entry) was observed at 21,700 & 21,800 strikes in Nifty. Strong put writing at a particular strike price is usually considered as a sign of resistance getting
