On Wednesday, the Nifty index made a small red candle on its daily chart, resembling a ‘hammer’ candle pattern due to a long lower shadow. This usually suggests that the market might be ready to turn upward after a decline, but we need to confirm it first.
Currently, the short-term trend looks weak. However, the index showed some recovery near 23,500, raising hopes for a bounce in the coming days. If Nifty moves sustainably above 23,800, it could signal a good upward move. The immediate support level is at 23,496.
Looking at the options data, there are many options for 23,800 and 23,700 on the call side, while for puts, the key level is at 23,500, followed closely by 23,600.
What Should Traders Do? Here’s Some Advice:
– Jatin Gedia, Mirae Asset Sharekhan: Nifty opened positively but faced some ups and downs, closing down 19 points. It tested the 23,500 – 23,550 support zone and bounced back sharply. As long as this zone holds, there’s a good chance Nifty may rise towards 24,000, which is also near the 20-day moving average. The indicators are signaling a buy, so expect a bounce back.
– Rupak De, LKP Securities: Nifty is moving within the range of 23,500 to 24,200. The hammer pattern formed on the daily chart and closing near the 200-day EMA strengthens the support at 23,500. A close below this could bring more selling pressure, but if it holds above 24,000, we might see a rally to 24,500.
– Hardik Matalia, Choice Broking: The hammer candle indicates buying interest. It suggests that Nifty could rise if key resistance levels are cleared. However, since it didn’t close above 23,700, be careful. If Nifty drops below 23,500, it could fall toward 23,200 to 23,000. On the flip side, resistances are at 23,800 and 24,000. A strong close above these levels is needed for a bullish confirmation.
(Disclaimer: The views expressed are those of the experts and do not reflect the opinions of Niftystat.)
Leave a Reply