Tech View: Nifty forms long red candle, uptrend intact above 23,800. How to trade on Friday

economictimes.indiatimes.com:

Nifty formed a long negative candle on the daily chart on Thursday, which indicates an emergence of minor selling pressure from the highs. The index is currently placed at the overhead resistance of the down-sloping trend line around 23,800 levels.
The bullish chart pattern like higher tops and bottoms is intact as per the daily timeframe chart and the present weakness could be in line with the new higher bottom of the pattern. The higher bottom reversal needs to be confirmed at the lows.

The near-term uptrend of the Nifty remains intact. Current weakness could end around 23,500-23,450 levels in the short term and one may expect an upside bounce from the lowes soon. A decisive move above the hurdle of 23,800 could open another round of upside bounce in the market, said Nagaraj Shetti of HDFC Securities.

According to the open interest (OI) data, the highest OI on the call side was observed at 23,700 and 23,800 strike prices, while on the put side, the highest OI was at 23,600 strike price followed by 23,500.

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

Hrishikesh Yedve, Asit C. Mehta Investment Interrmediates

Technically, Nifty formed a red candle on the daily scale, indicating weakness. The major support for the index lies at 23,430, while resistance remains at 23,810. Traders are advised to adopt a cautious approach, buying near support and selling near resistance.

Rupak De, LKP Securities

Nifty slipped lower towards the support level of 23,500 before closing slightly off the day's low. Going forward,