Having moved just above the recent lower top of 21,750 levels on 29th and 30th Jan, there is a higher probability of negation of the previous bearish chart pattern like lower highs and lower lows on the daily chart and that could eventually result in a bullish formation of higher highs and lows, said Nagaraj Shetti of HDFC Securities.
Both daily and hourly momentum indicators gave a negative crossover. OI data showed that on the call side, the highest OI was observed at 22,000 followed by 21,900 strike prices, while on the put side, the highest OI was at 21,500 strike price.
What should traders do? Here’s what analysts said:
Rupak De, Senior Technical Analyst, LKP Securities
The trend may continue to be volatile on Thursday, especially as the Interim Budget will be delivered. Support on the lower end is situated at 21,500, while a decisive move above 21,750 might trigger a rally towards 22,100 and beyond.
Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas
On the daily charts, we can observe that Nifty is broadly trading within the range of 21,100 – 21,800 since the past nine trading sessions. Nifty has been trading in a volatile manner within this broad range. Under such a situation when the price and momentum indicator are not in sync, it generally leads to a rangebound move. Considering the event of Interim Budget volatility is likely to continue. Key support levels are 21,550 – 21,500, while the immediate hurdle zone is placed at 21,850 – 21,900.
Ajit Mishra, SVP – Technical Research, Religare Broking
The recent move in the index is not giving any clear signal over the next directional move and we need a decisive close above 21,850 in Nifty to inch towards the 22,000 zone else profit taking would resume. Amid all this, we reiterate our view to focus on stock selection and trade management citing the upcoming events and prevailing earnings season.
(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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