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


The Nifty 50 ended on a stable note after a volatile session on Wednesday, as mixed signals from global markets triggered profit-taking. The refinancing of positions on the May derivative series before the April series expired added to the volatility.

While the Nifty 50 ended flat at 22,434.65 points, it formed a small positive candle on the daily chart with an opening gap down and with an upper shadow.

Technically, this trend indicates a broader movement in the market, close to all-time highs, said Nagaraj Shetti, senior technical research analyst at HDFC Securities.

“The lesser positive trend, such as higher highs and higher lows, is intact according to the daily chart and the current weakness could be in line with the new higher low in the sequence. Therefore, any weakness from here could be a buying opportunity on the dips,” 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, it added.

Here’s what other market experts have to say about the current market setup.

Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas

The Nifty has seen consolidation over the last three trading sessions. The dynamics established on daily and hourly time frames provide divergent signals and therefore can lead to short-term consolidation. On the downside, 22,400-22,350 acts as a support zone, while 22,500-22,530 is the immediate support zone. obstacle zone. A breakout of the range on either side will result in a trend movement.

Shrikant Chouhan, Head of Equity Research, Kotak Securities

Technically, after a downward gap, the Nifty 50 took support near the 22,350 level and rebounded sharply. However, it did not manage to close above 22,500 points, which is largely negative.

We believe that the current market texture is still not directional. For the bulls, a fresh bullish rally is now possible only after the rejection of 22,500. Above this level, the market could rebound up to 22,600-22,675.

On the other hand, today’s low at 22,350 points would act as a sacrosanct support level for traders. Below this level could trigger a short-term correction to 22,200-22,150.

Mandar Bhojane, Research Analyst, Choice Broking

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

If Nifty crosses the 22520 level, it is likely to rise further up to the 22700 and 22800 levels. On the other hand, 22300 is an immediate support level.

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

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


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