Tech View: Nifty faces major hurdle at 20-EMA. What Traders Should Do on Friday
On the daily chart, we can see that the index is in the process of reversing the decline witnessed from 22,526 – 21,710. The key retracement level is at 22,118 – 22,214. Therefore, the rally is likely to continue over the next few trading sessions. Sharekhan’s Jatin Gedia said a decline towards the intraday support zone of 21,950-21,930 should be used as a buying opportunity.
Analysis of open interest (OI) data showed that the highest OI was found at the call option strike price of 22,200, followed by the strike price of 22,500. For put positions, the highest OI is observed at the strike price of 21,800.
What should traders do? Analysts said:
Rupak De, LKP Securities
Nifty rallied following the Doji candlestick pattern on the daily chart, indicating a strong bullish reversal. The index also successfully regained its important 50-day simple moving average (SMA). Going forward, Nifty could potentially extend its gains to the 22,250-25,300 range. Moreover, if it breaks above 22,300, a rebound towards above 22,500 may begin. The strategy of buying Dips is expected to remain viable as long as Nifty maintains levels above 21,840.
Osho Krishan, Angel One
Currently, 21,870~21,800 can be seen as the intermediate support level, and 21,700, the recent swing low, is expected to follow in the short term. The higher levels around 20 DEMA around 22,100 and the 22,150-22,200 zone behind them still remain a challenge for the bulls and a tentative attitude is likely to persist until a decisive target is achieved.
(Disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own. They do not represent the views of The Economic Times.)
