Tech View: Doji candle indicates indecisive mood, highest OI at 25K. Here’s how to trade on Tuesday
The near-term trend of Nifty remains positive. Having sustained above the hurdle of 24,400 levels (1.618% Fibonacci extension), there is a higher possibility of further gradual up move in Nifty towards 24950 levels in the next one week. Immediate support is at 24,450, said Nagaraj Shetti of HDFC Securities.
Nifty ended Monday’s session with a gain of 84.5 points to form a Doji candle on the daily charts and indicate indecisiveness in the market.The near-term trend of Nifty remains positive. Having sustained above the hurdle of 24,400 levels (1.618% Fibonacci extension), there is a higher possibility of further gradual upmove in Nifty towards 24950 levels in the next one week. Immediate is at 24,450, said of .
showed that on the call side, the highest OI was observed at 25,000 followed by 24,700 strike prices, while on the put side, the highest OI was at 24,500 strike price.
What should traders do? Here’s what analysts said:
Osho Krishan, Senior Analyst - Technical & Derivatives, Angel One
From a technical standpoint, the zone encompassing the golden ratio, denoted by 24,610, is likely to be seen as the pivot zone, and a sustainable breakthrough could only boost further momentum. On the lower end, 24,500-24,400 is expected to cushion any upcoming blips, followed by the sacrosanct support of 24,150.Om Mehra, Technical Analyst, SAMCO Securities
The hourly chart continues to reveal higher highs and higher lows. The daily RSI stands at 74, indicating strong momentum for the short term. Nifty remains above the 9-day Exponential Moving Average. The immediate support remains around the 24,480-24,450 zone, while is placed at 24,750.Shrikant Chouhan, Head Equity Research, Kotak Securities
Breakout continuation formation on intraday charts indicating further uptrend from the current levels. For the trend following traders now, 24,500/80,500 would be the key support level. Above the same, the market could continue uptrend momentum till 24,650-24,700/81,000-81,200. On the flip side, below 24,500/80,500 uptrend would be vulnerable.Jatin Gedia, Sharekhan by BNP Paribas
On the daily charts, we can observe that Nifty is able to sustain the gains after breaking above 24,400. There can be a retest of the breakout however that should be used as a buying opportunity. The short term target of 24,610 has been achieved and hence we extend it further towards 24,840.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Source: Stocks-Markets-Economic Times
