Tech View: Nifty charts show high wave type pattern. What traders should do on Thursday
Nifty took triple bottom support around 19,730 zones on an intra-day basis and rose sharply to close near 19,850 zones. «Both call and put writers played out aggressively at 19,800 strikes, with the bulls leading the battle by a fair margin ahead of the weekly expiry tomorrow (Thursday). The support for Nifty now shifts to 19,700 from 19,600.
The max pain, which is the strike with most open option contracts, is placed at 19,800 in Nifty,» said Ashwin Ramani of SAMCO Securities. On the derivatives front, the highest call OI is at a 20000 strike price while on the put side, the highest OI remains at 18700 followed by the 18600 strike price.What should traders do? Here’s what analysts said: Rupak De, Senior Technical analyst at LKP Securities The market trend remains positive as the index stays above the moving average. Support is found at 19700, while resistance is expected between 18900 and 20000 levels.
Shrikant Chouhan, Head of Research (Retail), Kotak Securities The index has formed a higher bottom formation on intraday charts which is indicating a further uptrend from the current levels. As long as the index is holding 19725 the positive sentiment is likely to continue. Above the same, the market could rally till 19950-19975.
On the flip side, the dismissal of 19725 could trigger a short-term correction. Below the same, we could expect a quick correction till 19650-19615. Nagaraj Shetti, Technical Research Analyst, HDFC Securities The underlying uptrend of the Nifty remains intact.
Nifty is expected to move above the hurdle of 19800-19850 levels in the short term. The immediate upside target to be watched is around the historical 20K mark. Immediate support is placed at 19700 levels.(Disclaimer: Recommendations,
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