Tech View: Nifty bulls show indecisiveness at peak. What traders should do on Tuesday
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The positive chart pattern like higher tops and bottoms is intact on the daily chart and the Nifty is currently forming a new higher top of the sequence. A decisive move above 21,850 level is expected to nullify the present bearish effect and that could open more upside for the near term. Immediate support is placed at 21,550 level, Nagaraj Shetti of HDFC Securities said.
OI data showed that on the call side, the highest OI was observed at 22,000 followed by 21,800 strike prices while on the put side, the highest OI was at 21,700 strike price.
What should traders do? Here’s what analysts said:
Rupak De, senior technical analyst at LKP Securities
Nifty remained volatile throughout the session as traders remained indecisive. On the hourly chart, the Nifty fell below 20 DMA on an intraday basis before closing on a positive note. Going forward, a decisive fall below 21,650 might call for a directional fall in the market. On the higher end, a close above 21,750 might take the index towards the higher levels.
Avdhut Bagkar, StoxBox
To recoup the losing bias, the index must close over 21,800 on a decisive note. Selling pressure may intensify if the support of 21,500 is taken out on an aggressive note. Option data showed a spike in 21,700 PE, with 21,800 CE witnessing writing.
(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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