The negative chart pattern like lower tops and bottoms is on the verge of negation as Nifty moved above the previous lower top of 21,750 levels on Monday’s intraday session. The short-term trend of Nifty is positive and one may expect another decisive upside breakout of 21,750-21,800 levels in the short term. Immediate support is to be watched at 21,600 levels, said Nagaraj Shetti of HDFC Securities.
The RSI oscillator on the hourly charts is indicating a positive momentum but is yet to give a positive crossover on the daily chart.
OI data showed that on the call side, the highest OI was observed at 22,500 followed by 22,000 strike prices while on the put side, the highest OI was at 21,500 strike price.
What should traders do? Here’s what analysts said:
Rupak De, Senior Technical Analyst, LKP Securities
Nifty has surged above the dual resistances of 21500 and 21700. It successfully reclaimed the 20-day moving average (20DMA) after a few days of struggle. Furthermore, the recent upward movement has propelled the index above the critical moving average, indicating a positive trend for the short term. On the higher end, it is poised to potentially reach levels around 22100-22150. The support level is positioned at 21550.
Jatin Gedia, Sharekhan
On the upside, the index can continue its pullback towards 21913 which coincides with the 78.6% fibonacci retracement level of the fall from 22124 – 21137 and also the gap formed on the 17th January, 2024 in the range 21850 – 22000 shall act as an immediate hurdle going ahead. The daily momentum indicator has a negative crossover however it has reached the equilibrium line and also prices are not showing weakness which can lead to a range bound action over the next few trading sessions. Considering the above parameters we shall change our outlook on the Nifty to sideways and the broad range of consolidation is likely to be 21200 – 22000.
Shrey Jain, SAS Online
Looking ahead to the budget and FOMC meeting outcomes, we can expect continued volatility in the days to come. Nonetheless, overall sentiment remains optimistic. From a technical standpoint, call writers have positioned themselves in the 21700-21800 range for Nifty, suggesting a trading range between 21500-21800 with a strategy of buying on dips and selling on rallies.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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