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Technical View: Nifty faces a major hurdle at 20-EMA. What traders should do on Friday

Clever On Thursday, it ended up 173 points to test the immediate obstacle of the short-term moving average i.e. 20-EMA, but it could not surpass it in the middle of the expiration weekly.

On the daily charts, we can observe that the index is retracing the fall it witnessed from 22,526 to 21,710. The main retracement levels are placed between 22,118 and 22,214. The rally is therefore expected to continue. continue during the next trading sessions. Intraday declines towards the 21,950 – 21,930 support zone should be used as a buying opportunity, said Jatin Gedia of Sharekhan.

Open Interest (OI) data analysis reveals the highest OI on the call side at the strike price of 22,200, followed by the strike price of 22,500. On the put side, the highest OI is observed at the strike price of 21,800.

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

Rupak De, LKP Securities

Nifty rallied following a Doji candlestick pattern on the daily chart, indicating a robust bullish reversal. Additionally, the index managed to reclaim the crucial 50-day simple moving average (SMA). Going forward, the Nifty could potentially extend its gains in the range of 22,250 to 25,300. Moreover, a break above 22,300 could initiate a rally towards 22,500 and beyond. The buy-on-the-dip strategy should remain viable as long as the Nifty maintains levels above 21,840.

Osho Krishan, Angel One

For now, 21,870-21,800 is likely to be considered as intermediate support, followed by the recent low of 21,700 from a short-term perspective. While at the upper end, the 20 DEMA around 22,100, followed by 22,150-22,200, remains an uphill task for the bulls and until a breakthrough, hesitation is likely to persist.

(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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