nifty technical charts: Tech View: Nifty trend remains choppy in short term. What traders should do on Wednesday

nifty technical charts: Tech View: Nifty trend remains choppy in short term. What traders should do on Wednesday

Nifty on Tuesday ended 127 points higher to form a long bull candle with a lower shadow on the daily chart as the index bounced back from near the support at 21,600 level.

The short-term trend of Nifty remains choppy with alternative candle formations like bull and bear. A sustainable move above the immediate resistance of 21,800-21,850 levels can open a sharp upside towards another resistance of 22,000-22,100 levels in the near term, said Nagaraj Shetti of HDFC Securities.

Open Interest (OI) data showed that the call side displayed the highest OI at 21,900, followed by the 22,000 strike price. On the put side, the maximum OI was observed at the 21,500 strike price.

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

Jatin Gedia, Sharekhan

On the daily chart, we can observe that the Nifty has found buying interest from the zone of 21,540 – 21,520. The intraday bounce was restricted in the zone 21,760 – 21,730 where the key hourly moving averages are placed. Thus, it’s a narrow rangebound move though the intraday volatility has been high. The broader market witnessed buying interest from their respective support zone and closed in the green, which indicates that some stability is likely over the next few trading sessions.

Rupak De, LKP Securities

Nifty exhibited volatility throughout the day, mostly fluctuating within the range of 21,650 and 21,750. The prevailing sentiment is expected to persist in a sideways to bearish direction as long as the index stays below 21,850. On the downside, a short-term support level is identified at 21,500. A significant decline below 21,500 could potentially initiate a correction towards 21,270/21,000. Conversely, on the upside, a decisive breakthrough above 21,850 might trigger a rally towards 22,200.(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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