Tech View: Nifty forms small green candle on weekly chart. What traders should do next

Nifty on Friday ended 85 points higher to form a green candle with a minor upper shadow on the daily chart. On the weekly scale, a small positive candle with a long lower shadow was seen.

The short-term trend of the Nifty remains positive. A sharp move above the hurdle of 22,200-22,300 levels could pull Nifty towards new all-time highs around 22,550 levels. Immediate support is at 22,880 levels, said Nagaraj Shetti of HDFC Securities.

Markets would be shut on Monday for Holi and again on next Friday on the occasion of Good Friday. The coming week would, therefore, have only 3 trading days.

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

Rupak De, LKP Securities

Nifty witnessed two days of recovery following a Doji formation on the daily chart, indicating a bullish reversal. Moreover, the Nifty has reclaimed the critical 55-day exponential moving average. However, the index needs to cross over 22,100 to witness a clear rally towards the all-time high of 22,525. On the lower end, 22,950 might remain a strong support for the index. Below this level, the index might enter a consolidation phase.

Shilpa Rout, Prabhudas Lilladher

Markets witnessed very volatile moves all through the week. The support for Nifty now stands around 21,700 and the resistance is very strongly placed around 22,300. Until we breach either side of the range, the same kind of volatility might continue.

Jatin Gedia, Sharekhan

On the daily chart, we can observe that the index is in the process of retracing the fall it has witnessed from 22,526 – 21,710. The key retracement levels are placed at 22,118 – 22,214. The dip found buying interest at 21,900 – 21,880 where the 20-hour moving average was placed. The retracement process is still not complete and hence the rally can continue. The daily and hourly momentum indicator provides a divergent signal, which can lead to consolidation. The range is likely to be 22,200 – 21,900. Stock- specific action is likely to continue during this period.(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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