Tech View: Nifty forms Inside Body candle. What traders should do on Wednesday
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The inability of bulls to witness any sustainable upside bounce from here could eventually result in a decisive downside breakout of the present range movement. The high-low areas to be watched for the short term are around 19750-19600 levels, said Nagaraj Shetti of HDFC Securities.
Open Interest (OI) data shows that the Call side had the highest OI at 19,800, followed by 20,000 strike prices. On the Put side, the highest OI was observed at 19,600 strike price.
What should traders do? Here’s what analysts said:
Jatin Gedia, Sharekhan by BNP Paribas
On daily charts we can observe that the Nifty consolidated within the range (19734 – 19601) of the previous trading session and thus formed an Inside bar pattern, which makes the extremes of the range crucial levels to watch out for. A breach of this range on either side shall lead to a move in that direction. We are expecting this range to break on the upside. A pullback is expected till 19773 – 19800 where 40 hourly moving averages are placed and above that it can stretch higher till 19880 – 19900, which is the gap area formed on 21st September. On the flipside, a breach below 19600 can lead to a fall till 19440. In terms of levels, 19600 – 19620 is the crucial support zone while 19780 – 19800 shall act as an immediate hurdle zone.
Rupak De, Senior Technical analyst at LKP Securities
Nifty remained largely range-bound throughout the day as traders appeared uncertain. However, the short-term sentiment remains bearish as Nifty closed below the 21EMA. Looking ahead, the trend is expected to stay bearish as long as Nifty remains below the 19750 level. A support level is established at 19600, below which the index may decline further towards 19250.Shrikant Chouhan, Head of Research (Retail), Kotak Securities
For day traders, 19735 would be the immediate resistance level while 19620 could act as a key support zone. Above 18735, the index could move up till 19780-19800. On the other hand, below 19620 the market could slip till 19550-19520.
(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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