Tech View: Nifty call writers increase positions at 22,500 strike. What should traders do next week
Nifty on Thursday ended 19.5 points higher to form a Doji candle on the daily chart as it stayed below the psychological 22,500 mark, with call writers at the 22,500 strikes significantly increasing their positions.
In the case of a dip towards, 22,390 – 22,340 it should be used as a buying opportunity as key hourly moving averages are placed in this range and can attract buying interest. On the upside, 22,570 – 22,600 shall act as an immediate hurdle zone from a short-term perspective, said Jatin Gedia of Sharekhan.
The short-term moving averages are just below the price action and should continue to support the indices on any decline, chartists said.
The markets would be shut on Friday to mark the festival of Mahashivratri.
What should traders do? Here’s what analysts said:
Tejas Shah, JM Financial & BlinkX
Nifty tested the upper band of our target zone of 22,450-22,500. 22,250 and 22,000 are the important supports and till they remain intact, all dips should be bought into anticipating an eventual move into 23,000-23,100 levels on the higher side. Support for the Nifty is now seen at 22,425 and 22,250-300 levels. On the higher side, immediate resistance for Nifty is at 22,500-525 levels and the next resistance is at 22,700 Mark.
Osho Krishan, Angel One
From a technical standpoint, the index has managed to hold the higher ground and dips augured well for the bulls, but the range is narrowing down as we head into uncharted territory, which might be a sign of caution for the coming period. For now,
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