Tech View: Nifty giving non-directional signs. What should traders do on Friday
Nifty ended 32 points higher just above the 21-day Exponential Moving Average (21EMA).
However, the prevailing sentiment appears somewhat negative from the current level. At the lower end, crucial support is positioned at 21,950; as long as the index maintains a position above 21,950, there is a possibility of witnessing a recovery. Nevertheless, a decline below 21,950 could potentially lead the index towards 21,800, said Rupak De of LKP Securities.
Nifty has held on to the crucial support zone of 21,900 – 21,850, which coincided with the 20-day moving average and the 50% Fibonacci retracement level of the rise from 21530 – 22249.
OI data showed that on the Call side, the highest OI was observed at 22000 strike prices while on the Put side, the highest OI was at 22000 strike price which suggests sideways movement.
What should traders do? Here’s what analysts said:
Jatin Gedia, Sharekhan
Nifty is broadly trading in the range of 21,800–22,300 since the last 9 trading sessions and the momentum setup on the daily and hourly timeframe is providing divergent signals which makes a case for the range-bound action to continue. The index is still not out of the woods and it is likely to witness volatile action going ahead. In terms of levels, 21,860 – 21,800 shall act as a crucial support zone, while 22,230–22,250 shall act as an immediate hurdle zone from a short-term perspective.
Tejas Shah, Technical Research, JM Financial & BlinkX
Broadly, Nifty is still trading in the range of 22,000 to 22,300 levels for the
