Tech View: Profit booking likely at higher levels. Here’s how to trade on Friday
Nifty on Thursday formed a Doji candle on daily chart, which indicates indecisiveness prevailing in the marketplace at current juncture.
The short-term trend of Nifty continues to be positive amid high volatility. Having moved above the hurdle of 22,250 level (mid-part of Tuesday's long bear candle) recently, Nifty could move towards the next upper hurdle of 23,200 (upper part of long bear candle) in the near term. Immediate support is at 22,640 level, said Nagaraj Shetti of HDFC Securities.
Open Interest (OI) data showed that on the call side, the highest OI was observed at 23,000 and 23,300 strike prices. On the put side, the highest OI was at 22,000 strike price.
What should traders do? Here’s what analysts said:
Tejas Shah, JM Financial & BlinkX
We need to wait and watch till the high (22,910) or low (22,642) of Thursday’s daily candle is taken out for further direction on Nifty in Thursday’s trading session. Support for Nifty is now seen at 22,650 and 22,400-500 levels. On the higher side, immediate resistance is at 22,850 levels and the next psychological resistance is at 23,000 Mark. Overall, the upside looks limited as far as indices are concerned.
Osho Krishan, Angel One
Nifty50 index has rebounded by more than 61.80% from its recent decline and has successfully advanced above all its major Exponential Moving Averages (EMAs) on the daily chart. The index has returned to its bullish terrain, and the across-board participation certainly depicts the bullish undertone of the market participants. From a
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