Tech View: Nifty forms Inside Bar candle. What should traders do on Tuesday

economictimes.indiatimes.com:

Nifty on Monday ended 33 points lower to form an Inside Bar pattern on the daily chart with the India VIX recording a surge of over 13%.

“We need to wait and watch, till the high (22,589) or low (22,409) is taken out for further direction on Nifty. Support for the Nifty is now seen at 22,350 and 22,200-250 levels. On the higher side, the immediate resistance zone for Nifty is at 22,600-625 levels and the next resistance is at 22,800 Mark. Overall, Nifty is likely to remain volatile within the 22,200–22,800 range in the near term with a negative bias, said Tejas Shah, Technical Research, JM Financial & BlinkX.

Coming to the OI Data, on the call side, the highest OI was observed at 22500 followed by 22700 strike prices while on the put side, the highest OI was at 22500 strike price.

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

Shrikant Chouhan, Kotak Securities

We are of the view that the short-term market texture is still on the weak side and for the traders now, 22600/74400 would act as a trend decider level. As long as the market is trading below the same, the chances of hitting 22300-22250/73500-73350 would turn bright. On the flip side, above 22600/74400 the sentiment could change. Above 22600/74400, the market could bounce back till 22700-22735/74700-74800.

Jatin Gedia, Sharekhan

The strategy to trade in Nifty would be to sell in case the low of 22348 if breached on the downside or if the Nifty bounces towards 22570 – 22620 zone. Under both scenarios, we are expecting very limited upside as the Nifty