Tech View: Nifty faces major hurdle at 21-DEMA. What traders should do next week

economictimes.indiatimes.com:

Nifty on Friday ended 98 points higher to form an Inside Bar candlestick pattern on the daily chart. If the headline index manages to hold Thursday's low of 21,932, a pullback looks possible to chartists.

Last month, the index found support around 21,780 levels, and the 100-Days exponential moving average (DEMA) is placed near 21,820. Therefore, on the downside, 21,780-21,820 will act as the next key support for the index. On the upside, the 21-DEMA is positioned near 22,335, which will serve as a major hurdle, said Neeraj Sharma of Asit C. Mehta Investment Interrmediates.

What should traders do? Here’s what analysts said:

Rupak De, Senior Technical Analyst, LKP Securities

On the daily chart, the index has broken down from the rising channel, indicating a rise in bearish sentiment. The trend is likely to remain weak in the near term, with resistance noted at 22,200. As long as the Nifty remains below this level, a strategy of selling on rallies may be favourable for traders. Support at the lower end is situated at 21,950 on a sustained basis. A decisive drop below this level could trigger panic in the market.

Tejas Shah, Technical Research, JM Financial & BlinkX

We need to wait and watch till the high (22,131) or low (21,950) of Friday’s daily candle is taken out for further direction on Nifty in Friday’s trading session. Support for the index is now seen at 21,950-22,000 and 21,700-800 levels. On the higher side, the immediate resistance zone for Nifty is at 22,200-250 levels and the next resistance is at