Tech View: Nifty forms another Doji candle. Here’s how to trade on Thursday
The near-term uptrend of Nifty continues to hold strong. Although Nifty is consolidating at higher levels, there is no indication of a significant reversal pattern forming at these highs. A further upward movement could push Nifty towards the 24,900 mark next week. Immediate support is positioned at 24,450 levels, according to Nagaraj Shetti of HDFC Securities.
ended Tuesday’s session with a gain of 26 points and formed Doji candle once again with analysts saying that one more such session can lead to a reversal pattern.The near-term uptrend of Nifty remains intact. Though Nifty is consolidating at the higher levels, there is no confirmation of any significant reversal pattern building at the highs. Further up move from here could pull Nifty towards 24,900 levels next week. Immediate support is at 24,450 levels, said Nagaraj Shetti of HDFC Securities.
Open Interest (OI) data showed that on the call side, the highest OI was observed at 24,700 and 25,000 strike prices, while on the put side, the highest OI was at 24,000 strike price.
The stock market would remain closed on Wednesday on account of Muharram.
What should traders do? Here’s what analysts said:
Osho Krishan, Senior Analyst - Technical & Derivatives, Angel One
Nifty's trading range has notably shrunk to 80 points, making it more challenging for traders to navigate. However, despite this, the broader markets have continued to see active participation, which has contributed to maintaining a positive undertone for market participants. The support zone for Nifty is at 24,500-24,400, which is expected to see buyers stepping in when there are dips. However, it's not entirely clear if the trend will continue at higher levels. Nifty has surpassed the Golden retracement level of 24,610, and the next key level to watch for is around 24,700-24,750.Om Mehra, Technical Analyst, SAMCO Securities
Despite forming a small candle, the hourly time frame remains positive. The daily is positively skewed and stands at 74 levels. The immediate support remains at the 24,500 level. Any dip toward the 24,550 range would be considered a buying opportunity for the short term. On the upside, resistance has shifted to the 24,750-24,780 zone.Jatin Gedia, Sharekhan by BNP Paribas
On the daily charts, we can observe that Nifty has been inching higher towards the 24,840 mark. On the hourly charts there are signs of loss of momentum as the hourly momentum indicator has a negative crossover and the Bollinger bands have also begun to contract, indicating that there could be a consolidation over the next few trading sessions. The range of consolidation is likely to be 24700 – 24500.(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
