Tech View: Nifty making higher highs on daily, weekly charts. Here’s how to trade on Thursday
Nifty ended Wednesday’s session 71 points stronger to form a reasonable positive candle on the daily chart. The headline index is still making a higher high both on the daily and weekly charts.
The short-term trend of Nifty continues to be positive with range-bound action. The market is now set to challenge another opening down gap resistance of August 2 around 24,960. Hence, one may expect the index to move towards 24,960 and 25,100 levels in the next one week. Immediate support is placed at 24,650 levels, said Nagaraj Shetti of HDFC Securities.
What should traders do? Here’s what analysts said:
Tejas Shah, JM Financial & BlinkX
The short-term moving averages are just below the price action and should continue to support the indices on every decline. Support for Nifty is now seen at 24,650 and 24,500 levels. On the higher side, immediate resistance for Nifty is at 24,850 level and the next resistance is at 25,000. Overall, till this higher high syndrome continues one should not fight the trend.
Osho Krishan, Angel One
Nifty is steadily approaching the critical resistance of the bearish gap situated around 24,850-24,950, which would be crucial to monitor given the current momentum. On the flip side, a gradual upshift in the support base is evident, with 24,650-24,600 likely to provide a cushion for any potential setbacks, while the sacrosanct support lies around the pivotal zone of 24,500.
Jatin Gedia, Sharekhan
On the daily charts, we can observe that the Nifty is heading towards 24,830-24,900 zone. Sector
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