Tech View: Nifty forms long wick candle. What should traders do on Monday

Nifty on Thursday ended 203 points higher to form a reasonable bull candle with a long upper shadow on the daily chart, reflecting selling pressure near all-time highs around 22,500 levels.

The near-term uptrend of the Nifty remains intact with high volatility. The next upside levels to be watched are around 22,500-22,600 in the next week. Immediate support is at 22,250-22,200 levels, said Nagaraj Shetti of HDFC Securities.

Today’s session marks the end of the financial year 2023-24 for traders as the market would be shut on Friday on account of the Good Friday holiday.

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

Rupak De, LKP Securities

Nifty has rallied significantly, surpassing the 22,500 mark after maintaining momentum beyond 22,100. Furthermore, there’s a clear breakout in consolidation on the daily timeframe, signaling rising optimism. Nevertheless, Nifty encountered initial resistance near its previous swing high of 22,526. Consequently, to sustain a continued rally, it must surpass the 22,525 level decisively. On the downside, 22,200 could serve as short-term support.

Tejas Shah, Technical Research, JM Financial & BlinkX

Nifty continued to exhibit outperformance and closed above the crucial resistance zone of 22,200-250, which is a positive sign. A level of 22,200 is an immediate support to watch out for in the Nifty, while the bigger support zone stands at 21,950-22,000. On the higher side, immediate resistance for Nifty is at 22,400-425 levels and the next crucial resistance zone is at 22,500-550 levels. Overall, Nifty is likely to remain volatile within the 22,000 – 22,500 range in the near term with a positive bias and the bulls should continue to have the upper hand going forward.(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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