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Tech View: Nifty near hurdle zone at 22,300. What traders should do on Wednesday


May 14, 2024

Nifty on Tuesday ended 114 points higher to form a bullish candle on the daily chart and is now approaching the hurdle zone around 22,300 after two days of rebound.

“We need to witness a decisive close above 22,200-250 levels for further strength in the Nifty. Support for the Nifty is now seen at 21,950-22,000 and 21,700-800 levels. On the higher side, the immediate resistance zone for Nifty is at 22,200-250 levels and the next resistance is at 22,500 mark. Overall, Nifty is likely to remain volatile within the 21,800 – 22,300 range in the near term,” said Tejas Shah of JM Financial & BlinkX.

An analysis of Nifty put options reveals a concentration of Open Interest (OI) at the 22,000 level, implying potential support at this level. On the Call side, significant OI concentrations are observed at the 22,500 and 22,600 levels, nearing all-time highs.

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

Rupak De, Senior Technical Analyst, LKP Securities

Nifty managed to close above the crucial level of 22,200. Nonetheless, it needs to return within the channel to sustain momentum in the upcoming days. In the near term, a decisive move above 22,250 could propel the index towards the higher level of 22,600 in the short term. Conversely, a failure to maintain levels above 22,200 might trigger selling pressure in the market.

Jatin Gedia, Sharekhan

On the daily chart, we can observe that the Nifty has witnessed follow-through buying interest from the previous trading session, which is a bullish sign. The up move is likely to continue till 22,308 – 22,423, which is the 50% and 61.82% Fibonacci retracement level of the previous fall. On the downside, 22,040 – 22,000 is a crucial support from a short term perspective.

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

By admin