Tech View: Nifty forms small green candle on daily charts. What traders should do on Wednesday

As Nifty ended 46 points higher, a small green candle was formed on the daily charts, that closed above the high of Doji candle of Monday. Analysts see it as a positive indication, which signals that the uptrend will likely continue in the short term.

Nifty is currently placed at another resistance of 19,600 levels and one may expect this to be taken out soon on the upside. The next upper levels to be watched are around 19800 and immediate support is placed at 19450 levels, said Nagaraj Shetti of HDFC Securities.

The hourly momentum indicator has slipped in the negative, indicating a loss of momentum. With effect from Wednesday, the weekly derivative expiry of Nifty Bank will be held on Wednesdays while Nifty contracts will continue to expire on Thursdays.

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

Rupak De, LKP Securities
Nifty has sustained a breakout from a descending channel on the daily chart. The trend will remain favorable as long as the bulls can maintain Nifty above 19,440. A “buy on dips” strategy should be the preferred approach until Nifty falls below 19,440. Resistance on the upper end is positioned at 19,600, and if breached, the index could potentially move higher.

Shrikant Chouhan, Head of Research (Retail), Kotak Securities
Nifty is comfortably trading above the 50 and 20 day SMA (Simple Moving Average) and on intraday charts it has been forming a higher bottom formation, which is largely positive. The 19500 level would be the sacrosanct support zone for Nifty and above the same, the index could move up till 19620-19650. On the flip side, below 19500 bulls may prefer to exit from long positions and could slip till 19450-19420.

Kunal Shah, Senior Technical & Derivative analyst at LKP Securities
Bank Nifty index is currently consolidating within a defined range, with support at 44,500 and resistance at 44,650. Despite the consolidation, a bullish undertone is observed, and traders are encouraged to consider buying on dips, with strong support around 44,300-44,200. A breakout above 44700 could lead to further upside moves, especially towards the 45,000 level where significant open interest is seen on call options.

(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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