Tech View: Nifty forms ‘3 Advancing Soldiers’ pattern. Here’s how to trade on Thursday expiry

Nifty ended Wednesday session 147.5 points higher and formed a new peak at 23,889 level to form a long bull candle on the daily charts. Three such back to back candles indicate the formation of a ‘3 Advancing Soldiers‘ type pattern which signals upside continuation for the short term.

The present upside momentum could find resistance at the highs of around 24,000-24,100 levels (1.786% Fibonacci extension of crucial bottom/top/bottom of 2020-2022) and one may expect next round of consolidation or minor weakness to emerge from the highs. Immediate support is at 23,650 levels, said Nagaraj Shetti of HDFC Securities.

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

Rupak De, LKP Securities

Nifty continued to rise as the bulls maintained control, pushing the index to a new all-time high. The sentiment is likely to remain positive as long as it stays above 23,700. On the higher end, a decisive move above 24,000 could take the index towards 24,200.

Tejas Shah, JM Financial & BlinkX

Nifty tested the upper band of our target zone of 23,750-23,800 in today’s trading session. We believe that the rally in Nifty is likely to continue and it can test the psychological resistance levels of 24,000 on the higher side. The short term moving averages are just below the price action and should continue to support the indices on any decline. Support for the Nifty is now seen at 23,750-800 and 23,650 levels. On the higher side, an immediate psychological resistance is at 24,000 Mark and the next resistance is at 24,125 level.

Jatin Gedia, Sharekhan by BNP Paribas

On the daily charts we can observe that the index has witnessed follow-through buying interest after breaking out of the consolidation range on the upside. We believe that the Nifty is likely to target levels of 24,150 from a short term perspective. Any dips towards support zone 23,700 – 23,680 should be used as a buying opportunity. Daily and hourly momentum indicators are in sync so momentum is likely to continue.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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