Tech View: Nifty crosses 20-DEMA hurdle. What traders should do on Thursday
Nifty on Wednesday ended 119 points higher to form a green candle on the daily chart. The index surpassed the hurdle of short-term moving average i.e. 20-DEMA but needs sustainability above 22,200 to extend the rebound.
Daily and hourly momentum indicators are providing divergent signals, which can lead to a consolidation and hence in case of a dip towards 22,100 – 22,060 it should be used as a buying opportunity for a target of 22,215 — 22,250, said Jatin Gedia of Sharekhan.
Analysis of the Open Interest (OI) data revealed the highest OI on the call side at the 22,400 strike price, followed by the 22,500 strike price. On the put side, the highest OI was observed at the 22,000 strike price.
Thursday’s session will mark the end of the March derivative series as well as the end of the financial year 2023-24 for traders as the market will remain shut on Friday on account of the Good Friday holiday.
What should traders do? Here’s what analysts said:
Rupak De, LKP Securities
The short-term momentum appears positive, supported by a crossover in the RSI (14) indicator. The trend is likely to remain positive as long as it stays above 22,000. On the higher end, it could potentially move towards 22,300 and beyond in the short term.
Tejas Shah, Technical Research, JM Financial & BlinkX
Nifty is facing stiff resistance around 22,200 to 22,250 levels on an immediate basis and we believe that the index would further outperform only if it decisively closes above this resistance zone or else consolidation is likely to
