Tech View: Nifty bulls showing fatigue at peaks. What should traders do on Wednesday

Open Interest (OI) data shows the call side had the highest OI at the 22,800 level followed by the 23,000 strike prices. On the put side, the highest OI was observed at the 22,500 strike price.

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

Rupak De, LKP Securities

Nifty opened higher but struggled to withstand the selling pressure at elevated levels. On the hourly chart, the RSI (14) indicates bearish divergence, signaling a potential shift in price momentum towards the downside. Immediate support is observed at 22,600; a decisive drop below this level could drive the index towards 22,400. Conversely, resistance is evident at 22,770 on the higher end.

Jatin Gedia, Sharekhan

Nifty opened a gap up today and witnessed selling pressure during the second half of the trading session which resulted into a marginal negative close for the index. On the daily charts we can observe that the Nifty has faced resistance at the upper end of the channel placed around 22740 – 22770. The hourly momentum indicator has triggered a negative crossover which is sign of loss of momentum. Thus, we can expect some consolidation though the overall trend is still positive, and we expect the dips towards 22600 – 22580 to be bought into.

Rajesh Bhosale, Technical Analyst, Angel One

A strategy of buying on dips and selling on rises is advisable as of now. The range of 22750 - 22850 is identified as a supply zone, while immediate support is noted at 22550 - 22400. Traders should monitor these levels closely and adjust their strategies accordingly.

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