Business

Tech View: Nifty forms small red candle but base shifting higher. What traders should do on Wednesday

[ad_1]

After venturing into uncharted territory above the 19,800 mark for the first time, Nifty ended 38 points higher near the 19,750 mark to form a small red candle with minor upper and lower shadow on the daily charts. Chartists said the high wave type candle pattern can act as a reversal pattern post confirmation.

The base of the index is shifting higher and forming higher highs from the last four sessions. Now it has to hold above 19,650 zones to extend the move towards 19,850, then 20,000 zones, while on the downside, support is intact at 19,650 and 19515 zones, said Chandan Taparia of Motilal Oswal.

India VIX was up by 3.49% from 11.31 to 11.71 levels. Volatility slightly spiked and created momentum for indices to cheer at lifetime high zones.

Options data suggests a shift trading range between 19,400 to 20,000 zones while an immediate trading range between 19550 to 19900 zones.

What should traders do? Here’s what analysts said:
Jatin Gedia – Technical Research Analyst at Sharekhan
Considering the sharp runup, there can be consolidation. However, the overall trend is positive, and in case a dip occurs it should be bought into. On the upside, the short-term target is placed at 19,900. In terms of levels, 19,630 – 19,580 shall act as a crucial support zone, while 19,880 – 19,900 shall act as an immediate hurdle zone.

Rajesh Bhosale, Technical Analyst at Angel One
Considering the overall bullish sentiment, coupled with overbought conditions, similar subdued trading days might persist. In this scenario, the recommended approach would be to concentrate on intraday dips and be a miser about locking in small profits at higher levels. Immediate support is seen in the zone of 19680 – 19600, with stronger support expected around 19,500. On the upside, the immediate hurdle lies in the range of 19,850 – 19,900, before Nifty reaches the much-anticipated 20,000 mark. It’s advisable to adopt a stock-centric approach, but caution and selectiveness are crucial when making trading decisions.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The near-term trend of Nifty remains up and any consolidation from here could be a buy on dips opportunity. Immediate support is placed at 19,550-19,600 levels and the upper area of 19800-19850 could act as a short-term resistance.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)

[ad_2]

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button