Tech view: Nifty likely to bounce from 23,800 level, forms a small bullish candle. How to trade tomorrow
The underlying trend of Nifty remains choppy with weak bias. The market is moving in a broader high low range of 24,600-23,800 levels. Having declined from the upper range recently, Nifty is expected to witness an upside bounce from near the lower range of 23,800 levels in the short term. Immediate resistance to be watched around 24,300, said Nagaraj Shetti of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 24,300 and 24,200 strike prices, while on the put side, the highest OI was at 24,000 strike price followed by 24,100.
What should traders do? Here’s what analysts said:
Jatin Gedia, Sharekhan
On the daily charts, we can observe that the Nifty held on the 24,000 psychological support level. On the upside, the Nifty faced resistance at 24350 around the upper end of the falling channel. So, price-wise a range of 24,000 – 24,350 has been the consolidation range. The daily and hourly momentum indicator has a positive crossover which is a buy signal. Thus, there a signs that the Nifty is gearing up for an upmove for the next few trading sessions. A break below 23,970 is likely to weaken the structure.
Hrishikesh Yedve, Asit C Mehta Investment Interrmediates
Technically, on a daily basis, the index formed a doji like candle, indicating uncertainty. On the higher side, the 100-Days exponential moving average (DEMA) hurdle is placed near 24,430 followed by 24,540, which was last week’s high. On the downside, the 150-Days exponential moving average (DEMA) is placed
Read more on economictimes.indiatimes.com
