Tech View: Nifty may rally towards 23,500 in short term. What traders should do on Friday
Nifty ended the Thursday weekly expiry stronger by 370 points at record high levels to form a long bull candle on the daily chart.
On the higher end, above 23,000, the index might move towards 23,500 in the short term. On the lower end, support is placed at 22,800; the strength could remain intact as long as it remains above 22,800, said Rupak De of LKP Securities.
An analysis of Nifty put options reveals a concentration of Open Interest (OI) at the 22,700 level, implying potential support at this level. On the Call side, significant OI concentrations are observed at the 23,500 and 24,000 levels.
What should traders do? Here’s what analysts said:
Jatin Gedia, Sharekhan
Nifty has decisively broken above the previous resistance zone of 22,750 — 22,800 and is now heading towards the upper end of the rising channel placed at 23,100 – 23,150. Beyond which it can stretch towards 23,510. The zone of 22,750 – 22,800 shall now act as a support as per the principle of role reversal. The midcap index made an all-time high on the 17th May, Nifty on 23rd May while the Bank Nifty is still lagging and well below its all- time high.
Tejas Shah, Technical Research, JM Financial & BlinkX
The short-term moving averages are just below the price action and should continue to support the indices on any decline. Support for the Nifty is now seen at 22,750-800 and 22,500-550 levels. On the higher side, the psychological resistance is at the 23,000 mark and the next resistance zone is at 23,150-200 levels. Overall, all dips should be
