Tech View: Nifty trajectory looks choppy, support at 25,000-24,900. Here’s how to trade on Friday


Nifty formed a small red candle on the daily chart as it ended Thursday’s trading session on a slightly negative note as the index opened gap up but failed to sustain and slipped from its highs, closing 53.60 points lower at 25,145.

The short-term trend of Nifty continues to be choppy with weak bias. Further weakness from here could find key lower support around 25,000-24,900 levels before showing a sustainable upside bounce again from the lows. Immediate resistance is placed at 25300, said Nagaraj Shetti of HDFC Securities.

In the open interest (OI) data, the highest OI on the call side was observed at 25,200 and 25,150 strike prices, while on the put side, the highest OI was at 25,150 strike price.

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

Jatin Gedia, Sharekhan

On the daily charts we can observe that after the gap down in the previous trading session the price structure has weakened. The uptrend is still intact however there is a high probability of a consolidation within the range of 25,000 – 25,350 over the next few trading sessions. dips towards the support zone 25,100- 25,050 should be used as a buying opportunity. On the upside immediate hurdle is placed at 25,300 – 25,350.

Hrishikesh Yedve, Asit C. Mehta Investment Interrmediates

Technically, on a daily scale, index has formed a red candle today but index is still holding above the breakout point of the rounded bottom pattern and the 9-Day Exponential Moving Average (DEMA), indicating strength. On the downside, the 9-DEMA is positioned near 25,100. As long as the index holds above the 25,000-25,100 levels, a “buy on dips” strategy should be employed. On the upside, the index may test the 25,500-25,600 levels in the near future.

Tejas Shah, Technical Research, JM Financial & BlinkX

For Nifty, the short term moving averages are below the price action and should continue to support the indices on any decline. On the downside, 25,078 (Previous ATH level) / 24,950-25,000 are two important supports and only if these levels are broken then the short term set-up turns slightly weak. On the higher side, immediate resistance for Nifty is at 25,300-325 levels and the next crucial resistance zone is at 25,450-500 levels. Overall, Nifty is likely to remain volatile within the 25,000 – 25,300 range in the near term with a positive bias.

Rupak De, LKP Securities

Sentiment remains indecisive, as the index stayed within the range of 25,100 to 25,200. Going forward, a clear directional trend may not emerge as long as the index remains within this range. A decisive move above 25,200 could potentially push the index towards 25,350/25,500. Support on the lower end is placed at 25,080/24,950.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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