Tech View: Nifty forms Inside Bar candle on weekly expiry. What Nifty traders should do on Friday

Nifty on Thursday ended 141 points higher to form an Inside Bar candle on the daily chart. The index’s swift recovery following two bearish days indicates continued dominance by bulls in the market. The present sentiment suggests a promising trajectory towards 21,800-21,850 for the Nifty, analysts said.

The hourly momentum indicator has triggered a positive crossover, which is a buy signal.

Open Interest (OI) data showed the call side displayed the highest OI at the 49,000 level, closely followed by the 49,500 strike prices. Conversely, on the put side, the highest OI was observed at the 48,000 strike price.

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

Rupak De, Senior Technical Analyst at LKP Securities
If it surpasses 21,850, we might anticipate a further climb toward 22,000. Notably, the index appears to have a short-term support level around 21,500. A downward shift would likely initiate only if it falls below this mark. Until then, it seems favorable for buyers to take advantage of market dips.

Jatin Gedia, Technical Research Analyst at Sharekhan
The fall in Nifty has halted around 21,500 level where multiple support parameters in the form of the 38.2% fibonacci retracement level and the lower end of the rising channel are placed. We expect Nifty to hold on to this support and resume the next leg of up-move. Thus, we shall expect the positive momentum to continue over the next few trading sessions.(Subscribe to ETMarkets WhatsApp channel)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)