Tech View: Nifty forms bullish reversal pattern. What traders should do next week

Nifty on Friday ended 151 points higher after four successive days of decline and formed a bullish reversal pattern on the daily chart.

The psychological mark of 22,000 holds intermediate support, followed by strong support of the 21,800-21,700 subzone. On the higher end, the 20-DEMA placed at 22,300, followed by a bearish gap of 22,430-22,500, is likely to act as a daunting task in the near period and an authoritative breakthrough could only re-strengthen the lost momentum to the bulls of D-Street, said Osho Krishan of Angel One.

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

Tejas Shah, JM Financial & BlinkX
Technically, the set-up is mildly negative at this point with Nifty below the crucial resistance zone of 22,300-350. A crossover beyond this area is required for the bulls to be back in the game. Any immediate closing above 22,300-350 levels should bring back fresh buying momentum. Support for Nifty is now seen at 22,000 and 21,700-800.

On the higher side, the immediate resistance zone for Nifty is at 22,150-175 levels and the next crucial resistance zone is at 22,300-350 levels. Overall, the coming week should set up the market for a large trending move.

Rupak De, LKP Securities
Looking ahead, bulls may drive Nifty’s recovery towards 22,300. Furthermore, a decisive breakthrough above 22,300 could trigger a sustained rally towards 22,600. On the downside, support on a closing basis is situated at 22,000.(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)

FOLLOW US ON GOOGLE NEWS

Read original article here

Denial of responsibility! Todays Chronic is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – todayschronic.com. The content will be deleted within 24 hours.

Leave a Comment