Tech View: Nifty forms a Doji candle. What should traders do on Wednesday

The immediate resistance for Nifty is at 22,500, and a break above this on a closing basis would signal a resumption of the upward movement. Conversely, the immediate support is positioned at 22,200-22,150, and sustaining above this level could witness some recovery in the index, said Kunal Shah of LKP Securities.

Open Interest (OI) data showed the call side displayed the highest OI at 22,500, followed by 22,600 strike prices. On the put side, the highest OI was observed at the 22,000 strike price.

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

Nifty has formed a Doji candle on its daily chart which indicates indecisiveness prevailing in the marketplace at the current juncture. So we need to wait and watch, till the high (22,453) or low (22,256) of yesterday’s daily candle is taken out for further direction on Nifty in today’s trading session. Support for Nifty is now seen at 22,250-300 and 22,000 levels. On the higher side, immediate resistance for Nifty is at 22,500-525 levels and the next resistance is at the 22,700 mark.

On the daily charts, we can observe that the Nifty has been range-bound between 22,200 – 22,600 for the past seven trading sessions. On the downside, multiple support parameters in the form of the 20-day moving average (22199) and the previous swing low (22,224) are likely to absorb the selling pressure and provide a cushion in case of a decline. On the upside, 22,500 – 22,550 shall act as an immediate hurdle.

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