Tech View: Nifty bulls showing fatigue at peaks. What should traders do on Wednesday
Nifty on Tuesday ended about 23 points lower to form a small negative on the daily chart, indicating that bulls are getting tired at new highs.
Nifty is currently placed near the crucial overhead resistance of the ascending resistance line and also the important Fibonacci extension around 22,750-22,800 levels. The immediate support is at 22,500 levels and a decisive break below this support could trigger a short-term downward correction in the market, said Nagaraj Shetti of HDFC Securities.
Open Interest (OI) data shows the call side had the highest OI at the 22,800 level followed by the 23,000 strike prices. On the put side, the highest OI was observed at the 22,500 strike price.
What should traders do? Here’s what analysts said:
Rupak De, LKP Securities
Nifty opened higher but struggled to withstand the selling pressure at elevated levels. On the hourly chart, the RSI (14) indicates bearish divergence, signaling a potential shift in price momentum towards the downside. Immediate support is observed at 22,600; a decisive drop below this level could drive the index towards 22,400. Conversely, resistance is evident at 22,770 on the higher end.
Jatin Gedia, Sharekhan
Nifty opened a gap up today and witnessed selling pressure during the second half of the trading session which resulted into a marginal negative close for the index. On the daily charts we can observe that the Nifty has faced resistance at the upper end of the channel placed around 22740 – 22770. The hourly momentum indicator has triggered a
