Tech View: Profit booking likely at higher levels. Here’s how to trade on Friday
The short-term trend of Nifty remains positive despite high volatility. On moving above the hurdle of 22,250 level recently, Nifty still has chances to move towards the next upper hurdle of 23,200 in the near term.
on Thursday formed a Doji candle on daily chart, which indicates indecisiveness prevailing in the marketplace at current juncture.The short-term of Nifty continues to be positive amid high volatility. Having moved above the hurdle of 22,250 level (mid-part of Tuesday's long bear candle) recently, Nifty could move towards the next upper hurdle of 23,200 (upper part of long bear candle) in the near term. Immediate is at 22,640 level, said Nagaraj Shetti of .
Open Interest (OI) data showed that on the call side, the highest OI was observed at 23,000 and 23,300 strike prices. On the put side, the highest OI was at 22,000 strike price.
What should traders do? Here’s what analysts said:
Tejas Shah, JM Financial & BlinkX
We need to wait and watch till the high (22,910) or low (22,642) of Thursday’s daily candle is taken out for further direction on Nifty in Thursday’s session. Support for Nifty is now seen at 22,650 and 22,400-500 levels. On the higher side, immediate is at 22,850 and the next psychological resistance is at 23,000 Mark. Overall, the upside looks limited as far as are concerned.Osho Krishan, Angel One
index has rebounded by more than 61.80% from its recent decline and has successfully advanced above all its major Exponential Moving Averages (EMAs) on the daily chart. The index has returned to its bullish terrain, and the across-board participation certainly depicts the bullish undertone of the participants. From a standpoint, the 20-day Simple Moving Average (SMA) around 22,600 and the 61.80% Fibonacci retracement level of 22,552 are expected to provide a supportive foundation on an intermediate basis. On the higher end, the 2,300 mark withholds the major resilience and needs a cautious stance as we approach the same.Shrikant Chouhan, Kotak Securities
We are of the view that the index has completed one leg of pullback rally and we could see some at higher levels. For day traders now, 22,650/74,475 would act as a key support level. As long as the market is trading above the same, positive sentiment is likely to continue. On the higher side, the index could find the resistance at 22,900-23,000/75,290-75,500. On the other side, below 22,650/74,475 uptrend would be vulnerable. Below the same, traders may prefer to exit from long positions.(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
