On the weekly chart, a piercing line type pattern can be seen, indicating further upside potential for the market going forward.
A larger range boundary pattern around 22800-21750 has come into play this week. Nifty has risen from near the lower bound of the 21750 level this week and is expected to move towards the upper bound of the 22800 level in the next 1-2 weeks. Nagaraj Shetty, senior technical research analyst at HDFC Securities, said immediate support lies at the 22200 level.
What should traders do? Analysts say:
Rupak De, LKP Securities
Both calls and puts at the 22,500 strike saw heavy writing, indicating a sense of modulation. Therefore, traders should be careful during the first hour to confirm directional movements. Support appears at 22,400. On the upside, a sustained move could push the index toward above 22,600 in the near term.
Pravesh Guru, Swastika Investmart
This positive momentum could push the index to the 22,525 and even 22,750 levels. On the downside, 22,300 serves as an immediate support level, followed by the 100-DMA at 22,050. It is important to note that markets can experience volatility in both directions.
(Disclaimer: Recommendations, suggestions, views and opinions by experts are their own. They do not represent the views of Economic Times)
