On the weekly chart, a Piercing Line-type pattern was seen, which hinted at more upside for the market ahead.
Larger range bound pattern of around 22800-21750 has come into play this week. Having moved up from near the lower range of 21750 levels in this week, Nifty is expected to move towards the upper range of 22800 levels in the next 1-2 weeks. Immediate support is placed at 22200 levels, said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.
What should traders do? Here’s what analysts said:
Rupak De, LKP Securities
Heavy writing was visible in both call and put at 22,500 strike, indicating a sense of inflection. Therefore, traders need to be watchful in the initial hour to confirm any directional move. Support is visible at 22,400. On the higher end, a sustained move can take the index towards 22,600 and higher in the short term.
Pravesh Gour, Swastika Investmart
This positive momentum could push the index towards 22,525 and even 22,750 levels. On the downside, 22,300 will act as the immediate support level, followed by a 100-DMA of 22,050. It’s important to note that the market may experience volatility in both directions.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)