Tech view: Nifty faces resistance from short-term moving averages, forms small negative candle. How to trade tomorrow

A small negative candle was formed on the daily chart with a minor upper shadow. Technically, this pattern reflects ongoing range-bound action in the market and the Nifty is currently placed near the lower range around 24,900 levels.

After sustaining above the daily 10 and 20 period EMA in the last couple of months, the said moving average supports have been broken on the downside recently and they (10 & 20 period EMA) are now acting as a hurdle as per the concept of change in polarity around 25,150-25,200 levels.

The underlying trend of Nifty continues to be choppy with a weak bias. A sustainable move only above 25,200 and a sharp weakness below 24,800-24,700 could bring strong momentum in the market on either side, said Nagaraj Shetti of HDFC Securities.

In the open interest (OI) data, the highest OI on the call side was observed at 25,100 and 25,000 strike prices, while on the put side, the highest OI was at 25,000 strike price followed by 24,900.

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

Jatin Gedia, SharekhanOn the daily charts we can observe that the Nifty has been trading in the range of 24,900 – 25,200 since the last six trading sessions. We expect this price action to continue over the next couple of trading sessions. A decisive break on either side shall lead to trending moves in that particular direction. We expect this consolidation to breakout on the upside and target levels 25,360 – 25,500.

Hrishikesh Yedve, Asit C Mehta Investment Interrmediates

Technically, on the daily chart, the index formed a small red candle, indicating selling pressure at higher levels. On the upside, the 21-Day Exponential Moving Average (21-DEMA) is positioned near 25,230, which will act as an immediate hurdle, followed by 25,400. On the downside, immediate support is placed near 24,900, followed by 24,700. In the short term, the index is expected to consolidate within the range of 24,700–25,400.

Tejas Shah, JM Financial & BlinkX

Nifty formed a DOJI candle on its daily chart, which indicates indecisiveness prevailing in the marketplace at the current juncture. Presently, Nifty is in No Man’s Land. Broadly, Nifty is still trading in the range of 24,950 to 25,250 levels for the past few days and we need to wait and watch for either side breakout or breakdown for 250 to 300 points directional move in Nifty. Support for Nifty is now seen at 24,950-25,000 and 24,700-750. On the higher side, immediate resistance for Nifty is at 25,100 levels and the next crucial resistance zone is at 25,250-300 levels.

Rupak De, LKP Securities

The Nifty has slipped after a brief consolidation on the hourly time frame, suggesting increasing bearish sentiment among traders. The recent weakness has led Nifty below the 38.20% retracement of the previous rise from 24,694 to 25,212. Sentiment now appears slightly bearish, with immediate support at 24,900. A break below this level could intensify the weakness, potentially dragging Nifty down to 24,700. On the upside, 25,000 remains a strong resistance; only a decisive breakout above this level may trigger a directional rally in the market.

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

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