Tech View: Nifty may stage minor pullback. What traders should do on Friday
Nifty has been in a larger range movement of around 22,800-21,750 levels in the last couple of months, and is currently nearing a lower range and also a crucial support around 21,750 levels for the short term.
ended Thursday expiry weaker by 345 points as the index broke below both the lower boundary of its upward channel and the of the 50-day exponential moving average (DEMA) around the 22,150 level. The daily chart saw the formation of a long negative candle.has been in a larger range movement of around 22,800-21,750 in the last couple of months, and is currently nearing a lower range and also a crucial support around 21,750 levels for the short term. Having bounced back decently from this support in the past, there is a higher probability of minor upside from this lower support in the coming sessions. Immediate is at 22,100 levels, Nagaraj Shetti of said.
of Nifty put options reveals a concentration of Open Interest (OI) at the 21,500 level, indicating potential support. On the Call side, significant OI concentrations are observed at the 22,200 and 22,300 levels, nearing all-time highs.
What should do? Here’s what analysts said:
Shrikant Chouhan, Head Equity Research, Kotak Securities
We are of the view that the short-term texture is weak but due to temporary oversold conditions, we could see a one pullback rally from the current levels. For the traders now, 22,000/72,550 would act as a key level to watch out. Above 22000/72550, the market could bounce back till 22100-22150/72300-72500. On the flip side, below 22000/72550 the weak sentiment is likely to continue. Below this the market could slip till 21850-21800/72100-72000.Rupak De, Senior Technical Analyst, LKP Securities
Bears remained at the helm as the index fell sharply following a breakdown below 22,200, where significant Put writing had been visible. On the day of mayhem, the index kept breaking the supports as buyers did not buy the dips. The trend looks extremely weak with a possibility of a further fall in the near term. On the higher end, immediate resistance is visible at 22,200; the market might remain on sell on rise until it stays below 22200.Tejas Shah, Technical Research, JM Financial & BlinkX
Nifty closed below the crucial support zone of 22,200-250 (50-day EMA), which is not a healthy sign. The indicators are in the oversold zone on hourly charts and hence there is a strong possibility of recovery from the support levels in coming days. Support for the Nifty is now seen at 21,950 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, the bears should continue to have an upper hand going forward.(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
