Tech View: Nifty faces crucial resistance at 23,500; breakout needed to negate bearish sentiment. How to trade on Friday
Nifty index on Thursday displayed follow-up buying after the previous session's bounce from lower levels but struggled to sustain higher levels. This pattern suggests that selling pressure persists at elevated levels, reflecting a lack of conviction among buyers.
A breakdown below the immediate and crucial support at 23,000 could intensify selling pressure, potentially dragging the index toward the 22,800–22,500 range. On the upside, immediate resistance is observed at 23,300, followed by a critical hurdle near 23,500. A sustained close above these resistance levels is crucial to negate the prevailing bearish sentiment and confirm a bullish reversal, said Hardik Matalia of Choice Broking.
Given the heightened market volatility, Matalia advised the traders to remain cautious and implement strict stop-loss measures to protect their capital. He also recommended avoiding overnight long positions until the index decisively trades above the 23,500 mark to manage risks effectively in the current market environment.
According to the open interest (OI) data, the highest OI on the call side was observed at 23,200 and 23,300 strike prices, while on the put side, the highest OI was at 23,200 strike price followed by 23,100.
What should traders do? Here’s what analysts said:
Jatin Gedia, Mirae Asset Sharekhan
On the daily charts, we can observe that the Nifty is trading in the range of 23,420 – 23,000 for the last three sessions. Bollinger bands are contracting indicating rangebound price action going ahead. A breach of the
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