Technically speaking, Nifty has formed a small red candle on a daily scale with a long upper shadow, indicating selling pressure at higher levels. The 21-Day Simple Moving Average (DSMA) is placed at 23,270, making the 23,270-23,300 zone a strong hurdle. On the downside, 22,780 will act as a key support level. As long as the index holds 22,780, a buy-on-dips strategy is advisable, said Hrishikesh Yedve of Asit C. Mehta Investment Interrmediates.
As per the open interest (OI) data, the highest OI on the call side was observed at 23,200 and 24,100 strike prices, while on the put side, the highest OI was at 23,000 strike price followed by 22,800.
What should traders do? Here’s what analysts said:
Nagaraj Shetti, HDFC SecuritiesA small red candle was formed on the daily chart with a long upper shadow. Technically, this market action indicates a lack of strength in the upside bounce of the market. The short-term trend of Nifty remains positive, but the market is lacking the strength to surpass immediate hurdles. A decisive move above 23,250 levels could confirm near-term bottom reversal pattern in the market. Immediate support is placed at 22,800 levels.
Rupak De, LKP Securities
The Nifty remained volatile throughout the day before closing in the red. On the daily chart, an inverted hammer pattern has formed, signalling a possible bullish reversal. However, the index has been trading below the 21EMA on the daily chart. The RSI is in a bearish crossover and continues to decline. On the lower end, support is placed at 23,000 on a sustained basis, while on the higher end, the index may move towards 23,200 or higher
Satish Chandra Aluri, Lemonn Markets Desk
Benchmark indices ended flat on Thursday. Broader mid and smallcaps closed mixed for the day with the midcap index posting gains while smallcaps ended lower. Technically, the Nifty 50 is oscillating around the 23,000 support level with 22,800 acting as immediate support on the downside while on the upside, 23,300 zone acts as the next resistance.
(Disclaimer: 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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