Tech View: Nifty charts in favour of bulls, support at 24,700-24,550. Here’s how to trade on Friday

economictimes.indiatimes.com:

Nifty ended Thursday’s weekly expiry 41 points higher and formed a higher high-higher low formation for the fifth consecutive session. The daily charts saw the formation of a bearish candle as the index closed lower than its opening level.

Now, Nifty has to continue to hold above the 24,700 zone to extend the move towards 25,000 and 25,100 zones whereas supports are placed at 24,700 then 24,550 zones, said Chandan Taparia of Motilal Oswal.

“We have seen a decline in volatility with a surge in Put Call Ratio, which indicates that overall bullish bias could continue in the market. VIX has recently declined from 23 to 13 zones and lower volatility suggests overall bullish stance in the market,” he said.

The RSI is trending upward near the 60.46 level, further indicating bullish momentum in the market.

What should traders do? Here’s what analysts said:

Tejas Shah, JM Financial & BlinkX

The short-term moving averages are just below the price action and should continue to support the indices on every decline. Support for the index is now seen at 24,775 and 24,600-650 levels. On the higher side, immediate resistance for Nifty is at 24,850 level and the next resistance is at 25,000 mark.

Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates

Technically, the index entered the gap zone of 24,852-24,956 but faced profit booking, leading to the formation of a red candle on the daily scale. For a fresh bullish trigger, the index needs to cross the hurdle of the 24,950-24,960