Tech View: Nifty looks oversold zone on hourly charts. What traders should do on Thursday
The positive chart pattern like higher tops and bottoms is intact as per daily time-frame chart and presently the market is in an attempt of new higher bottom formation. The short-term trend remains weak, but the market is showing signs of higher bottom formation around 22,200 levels.
on Wednesday ended flat to form a high wave type candle pattern, which indicates chances of an upside bounce.The positive chart pattern like higher tops and bottoms is intact as per daily time-frame chart and presently the market is in an attempt of new higher bottom formation. The short-term trend remains weak, but the market is showing signs of higher bottom formation around 22,200 levels. Confirmation of reversal from here could open short-term upside bounce in the market. Immediate is at 22,200 and the next overhead is at 22,500 levels, said Nagaraj Shetti of .
OI data showed that on the call side, the highest OI was observed at 22,500 followed by 22,700 strike prices while on the put side, the highest OI was at 22,000 strike price.
What should do? Here’s what analysts said:
Jatin Gedia, Sharekhan
On the daily chart, we can observe that Nifty, after falling for three consecutive trading sessions, has reached the 22,200 mark where multiple support parameters in the form of a gap area as well as the Fibonacci retracement levels were placed. The bulls were able to defend the support on a closing basis. A follow-through buying interest can further strengthen this support. The hourly momentum has triggered a bullish crossover, which is a buy signal. Considering that prices have reached a crucial support zone and are showing signs of recovery we shall expect a relief rally till 22,415-22,500 over the next few trading sessions.Rupak De, Senior Technical Analyst, LKP Securities
remained volatile throughout the day. However, the short-term trend appeared weak as the index remained below the critical 21-EMA on the daily timeframe. In the near term, the sentiment may continue to weaken as long as it stays below 22,400. On the downside, the index might decline towards 22,150.Tejas Shah, Technical Research, JM Financial & BlinkX
The indicators are in the oversold zone on hourly charts and hence there is a strong possibility of recovery from the support levels in coming days. Supports for the Nifty are now seen at 22,200-250 and 22,000 levels. On the higher side, immediate resistance for Nifty is at 22,350 levels and the next crucial resistance zone is at 22,500-550 levels.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of )
Source: Stocks-Markets-Economic Times
