Tech View: Nifty forms hammer candle on daily chart. What traders should do on Tuesday

OI data showed that on the call side, the highest OI observed was at 22,300 followed by 22,500 strike prices while on the put side, the highest OI was at 22,000 strike price.

What should traders do? Here’s what analysts said:

Rupak De, Senior Technical Analyst, LKP Securities

Nifty’s recovery may encounter resistance in the 22,150-22,200 zone, and only a decisive move above 22,200 could trigger a stronger rally in the market. On the lower end, support is situated at 21,950.

Tejas Shah, Technical Research, JM Financial & BlinkX

Technically, it is quite apparent that the market is facing selling pressure at higher levels. However, the positive key takeaway for Nifty is that it is still holding above the psychological support level of 22,000 on a closing basis. The resistance zone of 22,200-250 remains important as a barrier and the market needs to cross this on a closing basis for further strength in Nifty. Support for the Nifty is now seen at 21,950-22,000 and 21,700-800 levels. On the higher side, the immediate resistance zone for Nifty is at 22,200-250 levels and the next resistance is at 22,500 mark. Overall, Nifty is likely to remain volatile within 21,800 – 22,300 range in the near term.

Ruchit Jain,

Nifty has seen a sharp correction of almost 1000 points in the last few trading sessions from the swing high. We had not seen any meaningful pullback and hence, the readings on the lower time frame were in the oversold zone. Also, the 100-DEMA support was placed around 21,800-21,850. Hence, the index witnessed a recovery from this support. It has also formed a ‘Bullish Hammer’ pattern on the daily chart, which is a positive sign if the price action shows positive momentum the next day. Hence, a move above Monday high could lead to positivity in the near term.

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