Tech View: Nifty may drift towards 23,160-23,100. Here’s how to trade on Wednesday

Nifty ended flat on Tuesday but formed a Doji candle on the daily chart and hinted at the possibility of a minor downward correction in the short term.

The index is currently placed at the hurdle of 23,400-23,500 levels (1.382% Fibonacci projection), weekly hanging man and the opening downside gap of June 4, which are weighing high for the market to sustain the new all-time highs. Hence, there is a possibility of a dip in the market. Immediate support is at 23,050 levels, Nagaraj Shetti of HDFC Securities said.

Open Interest (OI) data showed on the Call side, the highest OI was observed at 23,400 and 23,500 strike prices. On the Put side, the highest OI was at 23,000 strike price.

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

Jatin Gedia, Sharekhan

The hourly momentum indicator has triggered a negative crossover suggesting loss of momentum. Hence, there can be some consolidation in the near term and the Nifty is likely to drift towards 23,160 – 23,100 over the next couple of trading sessions failing to sustain can lead to a fall to 22,930. On the upside 23,420 – 23,500 is the immediate hurdle zone.

Tejas Shah, JM Financial & BlinkX

Nifty is facing a lot of resilience around 23,340-350 levels on an immediate basis and we need to witness a decisive close above 23,340-350 levels for further strength in Nifty. We believe that Nifty will further outperform only if it is able to decisively close above this resistance zone or else profit booking is likely from the current levels. Support for the Nifty is now seen at 23,200 & 22,950-23,000 levels. On the higher side, immediate resistance is at 23,350 levels & the next resistance is at 23,500 Mark.

Rupak De, LKP Securities

Nifty remained sideways during the day as there was no directional move. The sentiment might remain sideways as well until it breaks out of the 23,150-23,350 range. Any decisive breakout on either side might confirm the future direction of the market. On the higher end, above 23,350, it might move towards 23,600. Meanwhile, support below 23,150 is placed at 23,000-22,900.

(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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