Tech View: Nifty bulls eye Mt 25K as support shifts higher; here’s how to trade on Friday
Nifty ended Thursday's trading session 188 points higher, just above the 24,800 level, to form a long bull candle on the daily chart on Thursday expiry where 10-day EMA continued to offer support during consolidations.
Nifty is now advancing towards a key overhead resistance of 24,960 (1.786% Fibonacci extension, taken from the bottom of March 23, top of Sept 23 and bottom of Oct 23). Hence, one may expect volatility/consolidations around 24,950-25,000 levels in the short term, said Nagaraj Shetti of HDFC Securities.
Open Interest (OI) data showed that the highest OI on the call side was observed at 25,000 and 25,300 strike prices, while on the put side, it was at 24,500 strike price.
What should traders do? Here’s what analysts said:
Chandan Taparia, Motilal Oswal
Nifty has been making a higher top — higher bottom formations on the weekly scale and supports are gradually shifting higher. Index continued its winning streak for seventh consecutive weeks and base has shifted from 24,000 to 24,500 zones to extend the momentum towards 25,000 and 25,250 zones. Overall, it seems that the index is well positioned to scale higher than 25.000 and 25,250 zones with shifts in support zones.
Rupak De, Senior Technical Analyst, LKP Securities
Nifty remained volatile during the session, engulfing Wednesday's Doji pattern. The trend and momentum remain positive, with the index staying above critical short-term moving averages and a positive crossover in the daily RSI. In the short term, the trend is likely to remain positive
