Tech View: Clueless Nifty ends with Doji candle. What traders should do on Tuesday
[ad_1]
“Nifty is currently placed near the support of 20 week EMA around 19,580 levels. The said moving average has offered strong support for the Nifty since the past 3-4 months. Hence, there is a possibility of an upside bounce in the near term. At the highs, the market could find strong resistance around 19,850 levels. Immediate supports to be watched around 19,600-19,550 levels,” said Nagaraj Shetti of HDFC Securities.
Coming to the OI Data, on the call side, the highest OI was observed at 19,800 followed by 19,900 strike prices, while on the put side, the highest OI was at 19,500 strike price. On the other hand, Bank Nifty’s support was at 44,400-44,200, while resistance was placed at 44,900-45,100 levels.
What should traders do? Here’s what analysts said:
Jatin Gedia, Sharekhan by BNP Paribas
Nifty is trading right in the support zone 19,600 – 19,650 and considering the sharp decline in the past few trading sessions a pullback appears highly probable. On the hourly momentum indicator, we can observe a positive divergence and also a positive crossover which also suggests that a pullback is likely. The pullback can be till 19,820 – 19,880 where key hourly moving averages and the gap area formed on 21st September is placed. In terms of levels, 19,600 – 19,620 is the crucial support zone, while 19,820 – 19,880 shall act as an immediate hurdle zone.
Rupak De, Senior Technical analyst at LKP Securities
The index remained volatile before closing with a Doji pattern on the daily timeframe. This suggests a possible pause in the prevailing bearish trend. From here, the market might consolidate a bit before starting a new trend. Support on the lower end is pegged at 19,600; a fall below 19,600 might initiate fresh shorts. On the higher end, resistance is placed at 19,755.Shrikant Chouhan, Head of Research (Retail), Kotak Securities
A quick pullback rally is not ruled out from the current levels. For bulls, the 50-day SMA or 19,600 would act as a key support zone. Above which, the market could move up till 19,800-19,850. On the flip side, a fresh selloff is possible only after the dismissal of 19,600, below which the index could slip till 19,525-19,500.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
[ad_2]