Tech View: Nifty forms Inside Bar candle on the charts. Here’s how to trade on Wednesday
Nifty formed an Inside Bar pattern on the daily chart as it ended Tuesday’s trading session on a flat note as the index traded within the high and low range of the previous trading session.
The near-term uptrend status of Nifty remains intact. Present range-bound movement could eventually result in an upside breakout of the hurdle at 25,400 levels over the period of time. A decisive move above this hurdle is expected to pull Nifty towards the next upside target of 25,800. Immediate support is at 25,100 levels, Nagaraj Shetti of HDFC Securities said.
In the Open Interest (OI) data, the highest OI on the call side was observed at 25,500 and 25,600 strike prices, while on the put side, the highest OI was at 25,000 strike price.
What should traders do? Here’s what analysts said:
Tejas Shah, Technical Research, JM Financial & BlinkX
We need to wait and watch till the high (25,322) or low (25,235) of today’s daily candle is taken out for further direction. The short term moving averages are also below the price action and should continue to support the indices on any decline. Support for Nifty is now seen at 25,175-200 and 25,000-24,950 levels. On the higher side, immediate resistance is at 25,300-325 levels and the next crucial resistance zone is at 25,450-500 levels. Overall, bulls should continue to have an upper hand going forward.
Shrikant Chouhan, Kotak Securities
We are of the view that the current market texture is non-directional, perhaps traders are waiting for either side to breakout. For day traders
