Tech View: Nifty target shifts to 22,500. What traders should do on Wednesday

Nifty on Tuesday made a fresh peak and ended 75 points higher near the 22,200 mark to form a long bull candle on the daily charts. The index has been making a higher high both on daily and weekly charts.

The short-term trend of the Nifty remains up. A decisive move above 22,200 is likely to open a sharp upside towards the upper trajectory of 22,500-22,600 levels in the near term. Immediate support is at 22,080 levels, said Nagaraj Shetti of HDFC Securities.

OI data showed that on the call side, the highest OI was observed at 22,600 strike prices while on the put side, the highest OI was at 22,100 strike price.

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

Rupak De, LKP Securities

Nifty continues its upward momentum following a consolidation breakout on the daily chart. The trend remains robust as it has sustained itself both above the psychological level of 22,000 and the 21EMA on the daily timeframe. On the higher end, it may move towards 22,400/22,600 once the index decisively surpasses the 22,200 mark. Support on the lower end is identified at 22,000.

Om Mehra, Technical Analyst, SAMCO Securities

The daily bullish candle confirms the strong outlook while the hourly chart, with higher highs and higher lows, suggests that the primary trend remains strong. The next rally would likely attempt to reach the 22,300-22,350 zone. However, the India VIX, the fear gauge, ended higher and closed at a 16.07 level.

Jatin Gedia, Sharekhan

On the upside we expect Nifty to target levels of 22,500, which is the upper end of the rising channel. Bollinger bands have begun to expand, and prices are trading along the upper band indicating that the positive price action is likely to continue. The hourly momentum indicator still has a negative crossover, which is a point of worry, however we shall assign more weightage to the price action and continue to ride the up move. In terms of levels, 22460 – 22500 is the immediate hurdle zone while 22,000 – 21,950 shall act as a crucial support zone.(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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