nifty technical charts: Tech View: Nifty looks confused after 3-day rally. Here’s what traders should do on Wednesday

NEW DELHI: Nifty on Tuesday ended 5 points lower to form a Doji candle on the daily chart. The larger degree of lower tops and bottoms is intact as per daily timeframe chart and currently, Nifty is moving up towards the new lower top formation of the sequence, analysts say.

At the higher levels, the market could encounter strong resistance around 19500-19600 levels in the short term. Immediate support is placed at 19320 levels, said Nagaraj Shetti of HDFC Securities.

On the derivative front, the strike of 19500 saw the highest call open interest (OI) while the strikes of 19450 saw the addition of the highest call OI indicating immediate resistance.

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

Jatin Gedia, Sharekhan by BNP Paribas
The dip towards the support zone of 19330 – 19300 where the key hourly moving averages were placed was bought into and the hourly momentum indicator has also triggered a positive crossover from the equilibrium line which indicates that it has started a new cycle on the upside. It is still trading around the crucial resistance zone 19450 – 19500 and a decisive close above it shall lead to a further rally upwards till 19690. On the downside, 19300 – 19270 shall act as a crucial support zone from a short-term perspective.

Rupak De, LKP Securities
Nifty remained volatile within a narrow range as traders remained uncertain ahead of the Fed Chair’s scheduled speech on Tuesday. On the daily chart, Nifty encountered resistance at the 21EMA and closed just below it. If it manages to surpass the 21EMA, which is currently around 19,414, it could potentially head towards the 19,650-19,700 range. On the downside, support is situated at 19,300.(Subscribe to ETMarkets WhatsApp channel)

(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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