Tech View: Nifty forms High Wave candle ahead of Thursday expiry. Here’s how to trade next

economictimes.indiatimes.com:

Nifty ended 66 points lower above the 24,400 level to form a High Wave type candle pattern with analysts saying that a sustainable move above 24,580 could only confirm a near-term bottom reversal pattern.

The immediate support of 10 Day EMA has been broken on the downside and Nifty is currently placed near another support of 20 Day EMA around 24270 levels. These moving averages have been upheld in the last 5-6 weeks and the market's inability to sustain above these supports could eventually open sharp weakness ahead, said Nagaraj Shetti of HDFC Securities.

OI data showed that on the call side, the highest OI was observed at 24,600 followed by 24,700 strike prices while on the put side, the highest OI was at 24,300 strike price.

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

Rajesh Bhosale, Equity Technical Analyst, Angel One

For the monthly expiry session, we expect Nifty to continue trading within a range. As highlighted, the 24,300 — 24,250 zone is likely to act as support, below which the panic low of 24,050 from the Budget day could be retested. On the flip side, the high of the last two sessions around 24,600 seems a stiff hurdle, whereas the bearish engulfing high of 24,850 remains a daunting task to cross. Traders are advised to monitor these levels and set their trades accordingly.

Hrishikesh Yedve, Asit C. Mehta Investment

Technically, the index on a daily scale has formed a small bearish candle following the formation of a hammer candle yesterday. Thus, the 24,070-24,000 range will act as a demand