Thursday, December 7, 2023

Tech View: Nifty forms hammer pattern on daily charts. What should traders do next week

Indicating support-based shopping for at decrease ranges, Nifty on Friday shaped a bearish candle with an extended decrease shadow that resembled a hammer sample on the every day charts. Now, until it stays beneath 17,442 zones, weak point may very well be seen in direction of 17,300 and 17,250 zones, whereas on the upside, hurdles exist at 17525 and 17635 ranges, stated Chandan Taparia of Motilal Oswal.

Concern gauge index India VIX has been rising for the final 4 periods, giving discomfort to bulls out there.

Choices knowledge suggests a broader buying and selling vary between 17,000 to 17,800 zones, whereas a right away buying and selling vary in between 17,200 to 17,600 zones.

What ought to merchants do? Right here’s what analysts stated:

Amol Athawale, Deputy Vice-President – Technical Analysis, Kotak Securities
For positional merchants, 17,550 would act as a medium-term resistance zone, and beneath the identical, the index may slip to 17150. On the flip facet, a minor pullback rally is feasible if the index trades above 17425 and will transfer as much as 17480-17500.

Rahul Ghose, Founder & CEO, Hedged
Nifty is in a requirement space and has help as much as the 17,250 stage. Solely a detailed beneath this stage will make these quick sellers of PE run for canopy, however till that occurs, markets will attempt to transfer within the constructive path above 17,500.

Jatin Gedia, Technical Analysis Analyst, Sharekhan by BNP Paribas
Nifty is at present buying and selling across the 200-day transferring common (17434), which is attracting worth shopping for. This might result in volatility as each bulls and bears would attempt to defend and break that common. Broadly, the index has shifted its vary decrease to 17,800 – 17,200 from a brief time period perspective.

Regardless of the sharp fall, the every day momentum indicator has a constructive crossover suggesting that this dip needs to be purchased into. Till Nifty breaches this vary decisively on both facet, the rangebound motion is more likely to proceed, and we would see sector rotation and inventory particular motion.

(Disclaimer: Suggestions, ideas, views and opinions given by the specialists are their very own. These don’t symbolize the views of Financial Occasions)

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