Tech View: Nifty ends above 21 EMA. What traders should do on Thursday

"Strong put writing was observed at the 22,200 and 22,400 Strikes in the Index. The call & put writers fought fiercely at the 22,500 Strike and the option activity at this strike will provide cues about Nifty’s intraday direction," he added.

What should do? Here’s what analysts said:

Jatin Gedia, Sharekhan by BNP Paribas

witnessed a gap up opening and after the initial bout of volatility it stabilized and inched higher to close with gains of 736 points. The Nifty has managed to close above the short-term moving average of 22,514, which is a positive sign. The intraday range of movement has been big and above normal. We expect the range bound action to continue. The range is likely to be 21,300–23,000 from a short-term perspective. India VIX cooled off by 30% and closed around 19.03 on Wednesday and we expect it to cool off further as the uncertainty reduces.

Rupak De, LKP Securities

The index saw a sharp recovery from its 200-day moving average, closing above its rising trendline and 21-day . This suggests a buy-on-dip strategy with a stop-loss at 47,500. The immediate support level is 47,800, while resistance is at 49,500.

Neeraj Sharma, Asit C Mehta Investment Interrmediates

Technically, the index has crossed the hurdle of the 100-Day Exponential Moving Average (100-DEMA) and formed an Insider Bar candlestick pattern on a daily scale. The 100-DEMA is placed near 22,050 levels. As long as the index holds above 22,050, bullish momentum will continue. On the upside, 23,000 and 23,350 will act as resistance in the short term.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)