Tech View: Momentum indicator triggers positive crossover. What traders should do on Thursday
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The short-term trend of Nifty continues to be positive. A decisive move above 19,800 levels is likely to pull Nifty towards the next upside levels of 20,000-20,200 in the near term. Important support is placed at 19,650 levels, said Nagaraj Shetti of HDFC Securities.
Open Interest (OI) data showed that on the call side, the highest OI was observed at the 20,000 strike price, followed by 19,900 strike price. On the put side, the highest OI was at 9,600 strike price. For Bank Nifty, the support levels are at 44,300-44,200, while resistance is placed at 44,800-45,000 levels.
What should traders do? Here’s what analysts said:
Jatin Gedia, Sharekhan by BNP Paribas
The daily momentum indicator has triggered a positive crossover and hence in case of a dip it should be used as a buying opportunity. Wednesday’s intraday consolidation is a bullish sign as it sustained the gains, and we expect the positive momentum to continue over the next few trading sessions till 19883, which is the 61.82% Fibonacci retracement level of the entire fall from 20222 till 19333. On the downside, the gap area formed on Wednesday in the range 19718 – 19757 is likely to act as a short-term support.
Rupak De, Senior Technical Analyst at LKP Securities
On the hourly chart, Nifty has moved above the 200-period Simple Moving Average (SMA) following a breakout from an inverted Head and Shoulder pattern. In the short term, the index is likely to maintain its momentum. On the upside, it could potentially approach the 20,000 level. The support range is positioned at 19,700 – 19,750.
Shrikant Chouhan, Head of Research (Retail), Kotak Securities
After a long time, Nifty surpassed the 20-day SMA (Simple Moving Average) and it is also holding the bullish continuation formation on daily and intraday charts, which is largely positive. For the bulls, 19,750-19,700 would act as crucial support zones while 19,850-19,900 could be key resistance areas for the traders. However, below 19700, the uptrend would be vulnerable.
(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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