Tech View: Nifty showing non-directional trend on charts; what should traders do on Thursday
Nifty 50 ended on a flat note after a volatile session on Wednesday as mixed cues from global markets triggered profit booking. Rollover of positions to the May derivative series ahead of the expiry of the April series added to the volatility.
While Nifty 50 ended flat at 22,434.65 points, it has formed a small positive candle on the daily chart with a gap down opening and with an upper shadow.
Technically this pattern indicates broader range movement in the market near all-time highs, said Nagaraj Shetti, senior technical research analyst at HDFC Securities.
“The smaller degree positive pattern like higher tops and bottoms is intact as per daily chart and present weakness could be in line with the new higher bottom of the sequence. Hence, any weakness from here could be a buy on dips opportunity,” Shetti said.
A decisive move above 22,550 is likely to pull Nifty towards the next crucial hurdle of 22,800 levels, while immediate support is placed at 22,300 level, he added.
Here’s what other market experts have to say about the current market set-up.
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
The Nifty has been witnessing consolidation in the past three trading sessions. The momentum set-up on the daily and hourly time frames provides divergent signals and, hence, can lead to a consolidation in the near term.
On the downside, 22,400-22,350 is acting as a support zone, while 22,500-22,530 is the immediate hurdle zone. A breach of the range on either side shall result in a trending move.
