Tech View: Nifty ends below 20 DEMA; 24,000 key to avoiding sell-off. How to trade on Wednesday
Nifty finally closed at the lows.
A long bear candle was formed on Nifty’s daily chart on Tuesday, which has almost erased the gains made on Friday. Technically this market action is indicating a lack of strength to sustain the upside bounce.
The positive chart pattern like higher tops and bottoms is still intact as per the daily chart and the lower support of 24,200-24,000 is going to be crucial. If Nifty manages to hold above 24,200-24,000 levels in the next few sessions, there is a possibility of a sizable upside bounce in the market. Any failure to hold on to the said support could possibly bring intense selling pressure in the market. Immediate resistance is at 24,500 levels, said Nagaraj Shetti of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 24,500 and 24,400 strike prices, while on the put side, the highest OI was at 24,300 strike price followed by 24,350.
What should traders do? Here’s what analysts said:
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