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Tech View: Nifty forms Doji candle on weekly charts. What traders should do next week

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Clever On Friday, it ended down 234 points to form a Doji candle on the weekly scale. On daily charts, the index closed below the lows of the previous 3 trading sessions, indicating weakness.

The index is in the process of retracing the rise it experienced from 22,710 to 22,776. The next crucial support level lies at 22,370. On the positive side, 22,620 – 22,650 will be an immediate hurdle in an outlook. in the short term, said Jatin Gedia of Sharekhan.

What should traders do? Here’s what the analysts say:

Rupak De, LKP Securities

Nifty fell as it saw a consolidation breakout in a shorter time frame. Sentiment appears somewhat negative in the short term.

However, support is seen at 22,500 closing. As long as it remains above 22,500 closing, we do not expect a significant market correction. Sustained trading above 22,500 could potentially push the index towards 22,650-22,700 once again. Conversely, a decline below 22,500 could initiate a downward correction of 200-250 points.

Tejas Shah, Technical Research, JM Financial and BlinkX

The candlestick pattern (Long-legged Doji-Bearish) formed on the weekly chart is not encouraging. So we have to wait and watch until the high (22776) or low (22503) of the weekly candle is cleared for clearer direction on Nifty in Monday trading session.

Short-term moving averages are just below price action and should continue to support the indices on a decline. Support for the Nifty is now seen at the levels of 22,500 and 22,300. On the upper side, the immediate resistance for Nifty lies at the levels of 22,650 and the next resistance lies at the levels of 22,750 to 800. In the Together it would be interesting to see if a subsequent sale will take place today or not.

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

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