Tech View: Nifty ends with Doji candle again. What traders should do on Wednesday

Tech View: Nifty ends with Doji candle again. What traders should do on Wednesday

Nifty on Tuesday ended 49 points lower to once again form a Doji candle on the daily chart. The index is now in the process of retesting the breakout of 22,300 it gave last week.

The index should move towards the next resistance zone of 22,450-500 either continuously from the current levels or maybe after a minor dip. Support for the index is now seen at 22,250-300 and 22,125-150 levels, said Tejas Shah of JM Financial & BlinkX.

Open Interest (OI) data showed the call side had the highest OI at 22,500, followed by the 22,800 strike prices. Conversely, on the put side, the maximum OI was observed at the 22,200 strike price.

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

Jatin Gedia, Sharekhan

The hourly moving averages placed in the range 22,369 – 22,264 shall act as a crucial support zone and until Nifty manages to hold on to this zone, we can expect the next leg of upmove to resume. The initial target and immediate hurdle is placed at 22,460 – 22,530. The hourly momentum indicator has a negative crossover. It, however, has reached the equilibrium line indicating that the fall may have matured and once this consolidation has been completed, the upmove is likely to resume.

Rupak De, LKP Securities

Bulls and bears experienced another day of minor clashes without arriving at a definitive outcome. The sentiment remains positive, with the index staying above the short-term moving average. The momentum indicator RSI is showing a bullish crossover. For a potential rally towards 22,600 and beyond, Nifty needs to decisively breach the 21,400 level. On the downside, support is positioned at 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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