Tech View: Nifty ends below 20-DMA. Here’s how to trade on Tuesday

Nifty ended Monday’s session with a lack of 662 factors to kind an extended bear candle on the each day chart and finish beneath its 20-DMA. The index additionally indicated that the current all-time excessive of 25,078 of 1st August could possibly be thought of as an essential prime reversal sample.

The short-term development of Nifty is sharply down and the general chart sample from smaller to bigger time-frame is wanting weak. The following draw back to be watched is round 23,625 (38.2% Fibonacci retracement taken from 4th June backside to 1st Aug prime). Fast resistance is positioned at 24,250 ranges, mentioned Nagaraj Shetti of HDFC Securities.

Open Curiosity (OI) knowledge confirmed that the best OI on the decision aspect was on the 24,300 and 24,400 strike costs, whereas on the put aspect, it was concentrated at 24,000 strike worth.

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

Hrishikesh Yedve, Asit C. Mehta Funding

Nifty witnessed heavy promoting strain after forming a Spinning High Sample and ended with a pink candle. A powerful break beneath 24,000 will seemingly set off additional promoting strain within the index. On the draw back, 23,300 and 23,000 will present important assist for Nifty within the speedy time period.

Rajesh Bhosale, Fairness Technical Analyst, Angel One

Merchants are suggested to keep away from trying to catch the underside within the brief time period and will use any rebounds to cut back lengthy positions. On this situation, 24,250 is seen as speedy resistance, whereas overcoming the bearish hole left as we speak between 24,350 and 24,700 could be a frightening process. On the draw back, 23,900 adopted by 23,600 (the 38.2% retracement of positive factors from the election day low) are speedy assist ranges.The important thing assist could be round 23,400-23,300, aligning with the 89 EMA and the 50% retracement of the talked about up transfer. Merchants ought to monitor these ranges and modify their trades accordingly.

Rupak De, Senior Technical Analyst, LKP Securities

Nifty slipped again into the rising channel on the each day time-frame as a result of heavy promoting in the course of the day. On the decrease finish, Nifty discovered preliminary assist on the 50EMA earlier than closing barely larger. The RSI is in a bearish crossover and falling. Sentiment is prone to stay weak within the brief time period and should weaken additional beneath 23,900. Help is positioned at 23,900/23,700. On the upper finish, resistance is seen at 24,200/24,500.(Disclaimer: Suggestions, ideas, views and opinions given by the consultants are their very own. These don’t symbolize the views of The Financial Occasions)