Tech View: Nifty bulls using every dip to go long. What traders should do on Friday

The short-term trend of Nifty is choppy with range-bound action. Any upside from here could encounter strong resistance around 22,800 levels. Immediate support is at 22,550 levels and a slide below the support could trigger some more weakness ahead, Nagaraj Shetti of HDFC Securities said.Open Interest (OI) data showed that on the Call side, the highest OI was observed at 22,700 followed by 23,000 strike prices while on the put side, the highest OI was at 22,500 strike price.

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

Rupak De, LKP Securities

On the hourly chart, Nifty formed a lower peak, indicating a decrease in bullish sentiment. The momentum indicator has crossed into bearish territory, suggesting weak momentum. In the short term, the trend may continue sideways with a potential to fluctuate within the range of 22,500-22,800.

Tejas Shah, JM Financial & BlinkX

The candlestick pattern formed on the daily chart is an encouraging one. We believe that as long as Nifty is holding above the 22,500 mark, the recent is likely to continue for a few more days or weeks. The bulls are in full control of the markets at the current juncture and are using every intraday correction to create long positions. The short-term moving averages are just below the price action and should continue to support the indices on any decline.

Support for the Nifty is now seen at 22,500 and 22,300-350 levels. On the higher side, the immediate resistance zone for Nifty is at 22,750-800 levels and the next psychological resistance is at 23,000 Mark. Overall, Nifty is likely to remain volatile within the 22,300–22,800 range in the near term.

Jatin Gedia, Sharekhan

On the daily chart, we can observe that Nifty, after the selling in the previous trading session, has consolidated. 22,700 on the upside remains a crucial resistance, while 22,450 is the crucial support from a short-term perspective. Nifty is likely to consolidate within this range over the next few trading sessions.

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