Tech View: Nifty showing non-directional trend on charts; what should traders do on Thursday

Technically this pattern indicates broader range movement in the market near all-time highs, said Nagaraj Shetti, senior technical research analyst at HDFC Securities.

“The smaller degree positive pattern like higher tops and bottoms is intact as per daily chart and present weakness could be in line with the new higher bottom of the sequence. Hence, any weakness from here could be a buy on dips opportunity,” Shetti said.

A decisive move above 22,550 is likely to pull Nifty towards the next crucial hurdle of 22,800 levels, while immediate support is placed at 22,300 level, he added.

Here’s what other market experts have to say about the current market set-up.

Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas

The Nifty has been witnessing consolidation in the past three trading sessions. The momentum set-up on the daily and hourly time frames provides divergent signals and, hence, can lead to a consolidation in the near term.

On the downside, 22,400-22,350 is acting as a support zone, while 22,500-22,530 is the immediate hurdle zone. A breach of the range on either side shall result in a trending move.

Shrikant Chouhan, Head Equity Research, Kotak Securities

Technically, after a gap down open, the Nifty 50 took support near 22,350 level and bounced back sharply. However, it failed to close above 22,500 points, which is largely negative.

We are of the view that the current market texture is still non-directional. For the bulls now, a fresh uptrend rally is possible only after the dismissal of 22,500. Above this level, the market could rally till 22,600-22675.

On the flip side, today’s low of 22,350 points would act as a sacrosanct support level for the traders. Below the same, it could trigger a short-term correction till 22,200-22,150.

Mandar Bhojane, Research Analyst, Choice Broking

On the daily chart, the Nifty formed an inverted hammer after reaching a high of 22,521 levels. In the second half of trading, it fell again and sustained above the support of the 22,420 level, closing at 22,445.55.

If Nifty crosses the 22,520 level, it is expected to further rise to 22,700 and 22,800 levels. On the flip side, 22,300 acts as an immediate support level.

Analysis of the open interest (OI) data reveals the highest OI on the call side at the 22,700 strike price, followed by the 22,800 strike price. On the put side, the highest OI was observed at the 22,000 strike price.

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