What should a trader do? Here’s what the analyst said:
Rupak de, LKP Securities
The index was significantly closed due to its low day by purchasing interest at the bottom edge of the range. However, emotions remain weak as they were unable to regain the critical Fibonacci retracement level. Additionally, the index continues to trade below the critical moving average, strengthening the overall bearish undertone. In the short term, the index could remain a candidate for sale for sale unless it decisively crosses above 23,150 on a closed or sustained basis. On the downside, the support will be located at 22,800.
Hrishikesh Yedve, asit c mehta Investment Interrmemates
Technically, on a daily scale, Nifty shows strength by strengthening the candle-standing patterns near multiple support zones. As long as the index holds 22,725, the purchase-on-dep strategy remains favorable. The 21-day Simple Moving Average (DSMA) of 23,240 serves as an immediate hurdle, with decisive moves above 23,250 confirming a short-term bottom reversal.
Rajesh Bhosale, Angel One
After an eight-day winning streak, Nifty finally made a profit and reaffirmed his strong support of around 22,800. From a technical perspective, early signs of a potential double bottom layer of the daily chart suggest a solid foundation at this level. It tracks the falling wedge patterns connecting the major lows of August and November. However, a closer look at recent pricing actions reveals another falling scrap in a short time frame linking the lows of November and January.
From now on, strong support is apparent at every 100-point interval ranging from 22,800 to 22,700 (the bottom edge of the wedge) to 22,600 to 22,500, coinciding with a 127% rebound rebound in early February. Furthermore, RSI smoothed 2-point positive divergence suggests a potential shift to positive. Given these factors, we do not anticipate any significant negative risks and the bull may attempt to recover in the short term. Therefore, it is recommended that traders avoid panic sales and refrain from starting fresh short positions. Instead, every dip can be seen as an opportunity to accumulate quality names in a staggering way. The immediate resistance is placed at 23,250, matching the 20-day EMA and top-highs on the hourly chart, but the falling wedge cap of nearly 23,400 remains an important hurdle.
(Disclaimer: recommendations, suggestions, opinions and opinions given by experts are unique. These do not represent views of the economic era.)
