Tech View: Nifty charts signal indecisiveness on Street. What traders should do on Tuesday

Headline equity index Nifty today formed a bearish candle on the daily charts, indicating indecisiveness between the bulls and bears. The index has been forming higher highs - higher lows from the last two sessions. “Now, it has to hold above 18,300 zones, for an up move towards 18,500 then 18,600 zones whereas supports are placed at 18,188 and 18,088 zones,” said Chandan Taparia of Motilal Oswal.

Analysts said there is no confirmation of any higher top reversal pattern unfolding at the highs.

Option data suggests a broader trading range between 17,900 and 18,700 zones while an immediate trading range between 18,100 and 18,600 zones.

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

Manish Shah, Independent Trader and Coach
Nifty could see a rally towards 18,650-18,700 over the next couple of days. Support in Nifty is at 17,900 and as long as this support holds, one can expect the market to be in a general uptrend. Any short-term drop to 18,250 is a buying opportunity in Nifty.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The near-term uptrend status remains intact and the market is now showing minor consolidation at the hurdle of 18,350 levels. The choppy movement/minor weakness could continue for the next 1-2 sessions before showing another round of sharp upside bounce from the higher lows. Immediate support is placed at 18250.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
For the index, 18,250 and 18,200 would be key support zones, and above the same it could retest the level of 18,390. Any further upside could lift the index up to 18,500. Below 18,200, any uptrend would be vulnerable.

Deepak Jasani, Head of Retail Research, HDFC Securities
Tomorrow will be the last day for Q2FY23 results and the market could then focus on overall sentiments vs stock specific action. Nifty could take support from the 18,202-18,259 band while 18,399 could offer resistance in the near term.

Ajit Mishra, VP - Research, Religare Broking
Though we’re just inches away from the record high, the absence of momentum is keeping the participants, especially traders, on their toes. Besides, the lack of broader participation is further adding to their worries. Amid all, we reiterate our view to focus on identifying the top performers from across sectors and utilise intermediate pauses and dips to add them gradually.

Rupak De, Senior Technical Analyst at LKP Securities
On the daily chart, the index has sustained above the 50 EMA (17,619), which confirms the positive trend. The momentum indicator is in positive crossover and rising. The trend for the short term looks positive. On the higher end, resistance is visible at 18,450-18,500. On the lower end, support is visible at 18,250.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)