Tech View: Nifty downside momentum slowing down. What traders should do on Wednesday

economictimes.indiatimes.com:

Nifty ended Tuesday’s session flat and in the process formed a small bearish candle with a minor lower shadow on the daily chart. This pattern indicates a choppy movement in the market with weak bias. Nifty is currently showing signs of slowing down of downside momentum and is placed at the support of 10-day EMA around 19,650 levels, said Nagaraj Shetti of HDFC Securities.

The positive chart pattern like higher tops and bottoms is intact as per the daily timeframe chart and the market is currently in line with the new higher bottom formation, which needs to be confirmed, analysts said.What should traders do? Here’s what analysts said:Jatin Gedia – Technical Research Analyst at Sharekhan by BNP ParibasNifty took support at 50% Fibonacci retracement level (19650) of the rise from 19,300 – 19,992 and witnessed a bounce back which helped the index to close marginally in the green. The correction Nifty is undergoing is unlikely to result in a trend reversal and this intermediate pullback should be used as a buying opportunity. The primary trend is positive and hence we shall continue to maintain a bullish short-term outlook.

In terms of levels, 19,615 – 19,560 shall act as a crucial support zone, and on the upside 19,830 — 19,850 shall act as an immediate hurdle zone.Rupak De, LKP SecuritiesThe daily chart indicates a downward consolidation with the price falling below the rising trendline. The RSI shows a bearish crossover. Notably, the support level at 19,550 is crucial, and if breached, the index could further decline towards 19,300.