Tech View: Nifty charts hint at indecisiveness. What traders should do on Wednesday

Headline stock index Nifty formed a doji-like candle on the daily charts on Monday as it ended the session 0.47% higher and above the 18,200 level. With an upper shadow and a long lower shadow, charts show indecisiveness between bulls and bears.

Chartists said a sustained move above the 18,255 doji high would likely negate the pattern’s negative impact. The momentum indicator RSI was in a positive crossover. Skilled supports are seen at the 18,100 level while resistance lies around the 18,350 level.

The market remains closed for Tuesday trading due to guru Nanak Jayanti.

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

Rupak De, Senior Technical Analyst at
On the daily chart, the index remained above the previous swing high, indicating an ongoing uptrend. In the short-term, the trend could remain bullish with potential to reach 18,300/18,600. On the lower end, support lies at 18,000.

Ajit Mishra, Vice President – ​​Research, Mediation
Markets are gradually rising, following favorable global signals and supportive domestic factors. However, the lack of momentum suggests some caution regarding the record high. With this in mind, we think participants should focus more on stock selection for now, but avoid contrarian trades.

Nagaraj Shetti, Technical Research Analyst, Securities
Nifty’s short-term trend remains positive. The market is now showing signs of a sustained move higher to fresh swing highs. Next upside levels to watch are around 18,350 and next 18,600 levels in the next 1-2 weeks. Immediate support sits at 18,100.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Nifty is holding a higher bottom formation but at the same time constantly taking resistance near 18,260 levels. For trend-following traders, 18,050 and 18,000 would act as key support levels. If the index trades above 18,050, it could reach 18,300-18,350. On the downside, below 18,050, Nifty could retest the 17,950-17,900 level.

(Disclaimer: Experts’ recommendations, suggestions, views and opinions are their own. These do not represent the views of Economic Times)

https://economictimes.indiatimes.com/markets/stocks/news/tech-view-nifty-charts-hint-at-indecisiveness-what-traders-should-do-on-wednesday/articleshow/95357766.cms Tech View: Nifty charts hint at indecisiveness. What traders should do on Wednesday

Russell Falcon

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