Tech View: Nifty forms Doji candle. What should traders do on Tuesday

Apr 1, 2024 10:52 pm | News

Nifty on Monday ended 135 points higher to form a Doji candle on the daily chart with the index trying to break above the crucial overhead resistance of 22,500-22,550 levels.

Though Nifty is now placed at the crucial hurdle of around 22,500 levels, the overall chart pattern remains positive and we are unlikely to see any sharp decline from here. Any consolidation or dip could be a buying opportunity, said Nagaraj Shetti of HDFC Securities.

OI data showed that on the call side, the highest OI was observed at the 22,500 strike price, while on the put side, the highest OI was at the 22,200 strike price. On the other hand, Nifty Bank has support at 47,100-46,900, while resistance is placed at 48,000 and 48,200 levels.

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

Kunal Shah, LKP Securities

Nifty encountered a sideways trading session following a robust start, encountering resistance at 22,500, coinciding with the highest open interest on the call side. To maintain the upward momentum, the index must decisively breach the 22,500 mark, paving the way for further gains towards 22,700/22,800 levels. On the downside, support is situated at 22,350, and as long as the index holds above this level, the overall outlook remains optimistic.

Jatin Gedia, Sharekhan

Nifty opened at a gap-up and traded with a narrow range thereafter. It registered a new all-time high of 22529.95. Nifty has been witnessing a sharp up move in the past couple of trading sessions and we expect the momentum to continue. The hourly momentum indicator has triggered a negative crossover which can lead to a consolidation and a dip towards 22,400 – 22,350 is possible, however, it should be used as a buying opportunity as the overall trend appears positive. If Nifty manages to sustain above 22,500, then there shall be a further upside till 22,670 – 22,740.

Tejas Shah, Technical Research, JM Financial & BlinkX

Nifty is facing a lot of resilience around 22,500-530 levels (previous all-time high) for the past couple of days on an immediate basis. We need to see a decisive close above 22,500-530 levels for further strength in Nifty. The short-term moving averages are below the price action and should continue to support the indices on any decline. A level of 22,425 is an immediate support to watch out for in the Nifty, while the bigger support zone stands at 22,150-22,200. On the higher side, immediate crucial resistance for zone Nifty is at 22,500-530 levels and the next resistance zone is at 22,750-800 levels. Overall, all dips should be used as an opportunity to buy.

Osho Krishan, Senior Research Analyst, Angel One

On the specific front, the 22,500 mark is anticipated to act as a daunting task for the bulls, and an authoritative closure beyond the same could only trigger the next leg of the rally in the comparable period. On the lower end, 22,350-22,300 is expected to cushion any blip, followed by a strong support of 22,200. And with the current setup, ‘Buy on decline’ should be the apt approach for market participants.

(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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