Tech View: Nifty forms Piercing Line candle on weekly chart. What should traders do next week?
A pattern in the form of a piercing line appears on the weekly chart, suggesting further market upside potential in the future.
A broader range boundary pattern has been in place this week around 22800-21750. Nifty, which rose from the lower range of 21750 level this week, is expected to move to the upper range of 22800 level in the next 1-2 weeks. Immediate support has been reached at the 22200 level, said Nagaraj Shetti, senior technical research analyst at HDFC Securities.
What should traders do? Here’s what analysts said::
Rupak De, LKP Securities
The bold text stands out at both the call and the 22,500 strike, indicating an inflection point. Therefore, traders must be careful to check for movement in any direction in the early hours. Support is seen at 22,400. A sustained move at higher levels could push the index above 22,600 in the near term.
Pravesh Gour, Swastika Investmart
This positive momentum could push the index towards the 22,525 and even 22,750 levels. On the downside, 22,300 will act as an immediate support level, followed by the 100-DMA at 22,050. It is important to note that markets can experience volatility in both directions.
(Disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own. They do not represent the views of The Economic Times.)
