Tech View: Range-bound Nifty forms Doji candle. Here’s what traders should do on Thursday

Nifty on Wednesday ended 37 points higher to form a small-bodied candle with minor upper and lower shadow on the daily chart. This Doji-type candle is once again hinting at indecisiveness.

The overall chart pattern remains positive and one may expect Nifty to advance towards 19,600 levels in the short term. Any dips from here could be a buying opportunity around 19,300-19,250 levels, said Nagaraj Shetti of HDFC Securities.

Derivative data showed that on the call side, the highest OI was observed at 19,500, followed by 19,600 strike prices, while on the put side, the highest OI was at 19,400 strike price.

The hourly momentum indicator has a negative crossover, which is a sell signal and can lead to more consolidation.

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

Jatin Gedia, Sharekhan by BNP Paribas
On the daily charts, we can observe that the Nifty has been consolidating around the resistance zone of 19,450 – 19,500 where both bulls and bears are trying to defend their respective boundaries. On the way down, Nifty is trading above the key hourly moving average of 19,340 – 19,320, which shall act as an immediate support zone in case of a dip. On the upside, a decisive close above 19,450 – 19,500 shall lead to an extension of the current rally to 19,690. During this consolidation phase, broad market outperformance can continue.

Rupak De, LKP Securities
Nifty remained within a trading range as traders chose to wait ahead of the Fed Chairman’s speech. Nonetheless, the prevailing trend appears bullish as the Nifty closed above a critical short-term moving average. Notably, significant support from put writers is evident at 19,400, where they have established a substantial position. On the lower side, support levels are situated at 19,400/19,300. Conversely, resistance on the higher end is positioned at 19,500, where call writers have added significant positions.(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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