Tech View: Nifty to face resistance around 19,100 level. What traders should do on Thursday
Nifty on Wednesday ended 90 points lower to form a negative candle on the daily chart and indicate the formation of a lower top around 19,230 levels.
The short-term trend of the Nifty continues to be weak. It is expected to slide down to the lower support of 18,850 levels (200-day EMA) once again before showing another round of upside bounce from the lows.
Any intra-week up move from here could encounter resistance around 19,100 levels, said Nagaraj Shetti of HDFC Securities.
Open Interest (OI) data showed the highest OI for call options was observed at the 19,100 strike price, followed by the 19,200 strike price. On the put side, the highest OI was found at the 18,900 strike price.
What should traders do? Here’s what analysts said:
Shrey Jain, Founder and CEO, SAS Online
In anticipation of the Federal Open Market Committee (FOMC) meeting, the index encountered selling pressure from higher levels but managed to maintain support at 18,950.
The markets expect the Federal Reserve to maintain its current policy, but the concern lies in the possibility of sustaining the high interest rates for an extended period. The immediate upside resistance was noted at 19,100.
If the index breaks above this level, it could trigger short-covering moves, potentially leading towards the 19,250-19,300 range.
Kunal Shah, Senior Technical & Derivative analyst at LKP Securities
Prior to the FOMC meeting, the index faced selling pressure from higher levels but successfully held the 18,940 support level. Immediate resistance on the upside is identified at 19,100, and a breakout above this level may trigger short-covering moves toward the 19,250-19,300 range.
