Tech View: Nifty may remain on sell-on-rise mode. What traders should do on Tuesday

Nifty on Monday ended 166 points lower to close below the 20-DMA and form a lower top on the daily chart which signalled a diminishing bullish sentiment. A long bear candle was seen on the charts

The momentum indicator aligns with this bearish outlook, displaying a crossover. Nifty might remain in sell-on-rise mode as long as it remains below 21,850. On the downside, support is at 21,500, Rupak De of LKP Securities said.

Open Interest (OI) data showed the call side revealed the highest OI at 21,800, followed by 22,000 strike prices. On the put side, the maximum OI was observed at the 21,500 strike price.

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

Rajesh Bhosale, Technical Analyst, Angel One
Nifty also breached the critical 20-EMA support level, previously holding firm over the past two sessions, suggesting potential further weakness in the short term. While Nifty remains range-bound with 21,500 serving as strong support, today’s struggles in the broader markets indicate a likelihood of breaking these levels, potentially opening the path downwards towards 21,350 – 21,250 in the upcoming sessions. Conversely, resistance levels have shifted lower to around 21,800 – 21,850, having acted as barriers in the previous two sessions. Traders are advised to reduce long positions during any price rebounds and to refrain from bottom fishing until clear signs of strength emerge.

Jatin Gedia, Sharekhan
On the daily charts, we can observe that the Nifty has closed below the 20-day moving average (21,684) which is a sign of weakness. The daily momentum indicator has triggered a negative crossover which is a sell signal. Thus, both price and momentum indicators suggest weakness. The broader market witnessed a deep cut even today. The midcap index was down 2.57% and the smallcap Index cracked 4% today. The crucial support zone for the Midcap index is placed at 46,960 – 46,550 and that for the smallcap index is placed at 15,440 – 15,400.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

(You can now subscribe to our ETMarkets WhatsApp channel)

(What’s moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Download The Economic Times News App to get Daily Market Updates & Live Business News.

Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

Source link

Denial of responsibility! NewsConcerns is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Leave a Comment