Tech View: Nifty forms high wave type candle. What traders should do on Thursday
Nifty on Wednesday ended 17 points lower to form a high wave type candle on the daily chart. The index largely traded sideways and failed to generate any significant directional breakout.
The short-term trend of Nifty continues to be up. Further consolidation or minor dip in the market is expected before showing further upmove. A sustainable move above the immediate resistance of 22,300 levels is likely to open the doors for the higher target of 22,600 levels in the near term. Immediate support is at 22,070 level, said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.
An analysis of Nifty put options reveals a concentration of Open Interest (OI) at the 22,000 level, implying potential support at this level. On the call side, significant OI concentrations are observed at 22,500 and 22,600 levels, nearing all-time highs.
What should traders do? Here’s what analysts said:
Rupak De, Senior Technical Analyst, LKP Securities
Bulls struggled to push Nifty above the 22,250 mark on a closing basis. Sentiment remains subdued as long as it stays below 22,250. A decisive move beyond this level could potentially propel Nifty towards 22,600 and beyond. Conversely, a failure to sustain above 22,200 might invite selling pressure in the market.
Osho Krishan, Angel One
The broader view remains intact with the bullish biases, but it seems really challenging to hold on to higher grounds with conviction. Hence, one is required to have a pragmatic approach of the ‘Buy on dips’ and ‘Sell on the Rise’ until we see a
Read more on economictimes.indiatimes.com
