Tuesday, July 23, 2024

Tech View: Confused Nifty awaiting breakout on either side. Here’s how to trade on Friday

Thursday, July 11, 2024, 12:50
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Nifty on Thursday ended flat but formed an Inside Bar candle on the daily chart and found support at 10-day EMA. Having bounced back from this support in two sessions, the odds of upside bounce is likely in the short term, chartists say.The underlying trend of Nifty remains choppy with a positive bias. A sustainable move above 24,500 levels is expected to open the next upside targets of 24,900 levels in the near term. Immediate support is at 24,150, Nagaraj Shetti of HDFC Securities said.Open Interest (OI) data showed that on the call side, the highest OI was observed at 24,800 and 25,000 strike prices, while on the put side, the highest OI was at 24,000 strike price.What should traders do? Here’s what analysts said:Shrikant Chouhan, Kotak SecuritiesThe non-directional activity indicates that traders are waiting for either-side breakout. For bulls now, 24,400/80,150 would be the immediate breakout zone. Above the same, the market could rally up to 24,500-24,575/80,500-80,700. On the flip side, below 24,200/79,470 the selling pressure is likely to accelerate. Below which the market could slip till 24,100-24,075/79,100-79,000.Om Mehra, Technical Analyst, SAMCO SecuritiesNifty formed a consecutive Hanging Man pattern, indicating indecisiveness to bearish setup in the short term. A breach of the immediate support level at 24,140 would signal further weakness while surpassing the 24,400 mark would suggest a resumption of the uptrend.Rajesh Bhosale, Equity Technical Analyst, Angel OneOn the daily chart, prices formed an inside bar candle, trading within the previous session’s range. Bulls have continuously defended their territory against any weakness but have struggled to trigger upward momentum. Observing the chart closely reveals a defined range between the 24,150 and 24,450 zones. The next directional move is likely to come once this range is broken, and traders are awaiting a trigger for this momentum move. With the results season kicking off, we may soon see trending moves reappear in key indices. However, considering the overbought scenario across various parameters and the upcoming budget, we do not recommend aggressive long positions. Instead, it would be wise to book profits at higher levels.(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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