Tech View: Nifty breaks above 23,100, signalling upside momentum. How to trade on Thursday

The negative chart pattern like lower tops and bottoms is still intact. A sustainable move above the next hurdles of around 23,350-23,400 levels could negate this bearish pattern and also open more upside ahead. Immediate support is placed at 23,000 levels, said Nagaraj Shetti of HDFC Securities.

According to the open interest (OI) data, the highest OI on the call side was observed at 23,300 and 23,150 strike prices, while on the put side, the highest OI was at 23,000 strike price followed by 23,100.

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

Satish Chandra Aluri, Lemonn Markets DeskBenchmark indices extended gains on Wednesday as recovery continued from Monday’s slump with broader mid and smallcap indices also rebounding in Wednesday’s session. The sell-off had made indices oversold and there are some pockets of value emerging as valuations have eased and are now coming closer to long-term averages. Technically, the Nifty 50 bounced above the crucial 23,000 level with immediate resistance around the 23,200 level.

Rupak De, LKP Securities

The Nifty moved up, shrugging off two days of weakness. Though sentiment has improved slightly, overall weakness is likely to persist as the index remains below the 21EMA. On the lower end, 23,000 is likely to act as immediate support, and a fall below this level might trigger panic in the market. However, above 23,200, the Nifty could gather more strength.

Nandish Shah, HDFC Securities

Nifty rose for the second consecutive day with a gain of 205 points or 0.90%, to close at 23,163 ahead of the FOMC meeting later on Wednesday. NSE cash market volumes were lower by 21% as compared to Tuesday. Nifty has closed above its 10 DMA for the first time since 3rd Jan 2025. Nifty seems to have changed its trend from bearish to bullish before the crucial event of the Union Budget. Support has shifted up at 23,000, while immediate resistances for the Nifty are seen at 23,347 and 23,426.

Praveen Dwarakanath, Hedged.in

Nifty gave the dead cat bounce as expected after a gap up. However, it is still trading below the middle of the Bollinger band. The index has its resistance at the 23,350 level, a breach of this can take the index towards its resistance at the 23,800 level. The momentum indicators on the hourly chart have zoomed up towards the oversold region, which can be a reason for the sell-off near the resistance level. Options writer’s data for the January monthly expiry showed increased writing of the puts at 23,200 and below levels, indicating mild bullishness in the index.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)