Tech View: Nifty forms high wave type candle. What traders should do on Friday

Nifty on Thursday ended 144 points higher to form a high wave type candle pattern on the daily chart.

The short-term uptrend status of Nifty remains intact and there is a possibility of Nifty moving towards 19200-19300 levels again in the coming sessions before consolidating again from the highs. Immediate support is placed around 19050-19000 levels, said Nagaraj Shetti of HDFC Securities.

OI data showed that on the call side, the highest OI was observed at 19200 followed by 19500 strike prices while on the put side, the highest OI was at 19000 strike price. On the other hand, Bank Nifty has support at 42900-42700 while resistance is placed at 43350-43500 levels.

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

Kunal Shah, Senior Technical & Derivative analyst at LKP Securities
Nifty has formed a Doji candle on the daily chart, reflecting a state of indecision as a battle between the bulls and the bears unfolds. Downside support is apparent in the 19,000-18,900 range, with visible fresh put writing for the upcoming weekly expiry. Immediate resistance is situated at the 19,200 level, and a breakthrough at this point could trigger fresh short covering, potentially propelling the index towards 19,300-19,350.

Avdhut Bagkar, StoxBox
On the derivative front, the strikes of 19150 saw the highest addition of call open interest indicating the zone to act as immediate resistance. Nifty50’s breadth closed on a strong foot as only 8 stocks closed in the green.

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