Tech View: Nifty forms long bull candle on F&O expiry day. What traders should do on Friday

NEW DELHI: Headline equity index Nifty on Thursday formed a healthy bullish candle on the daily chart, which indicates an attempt at a sharp upside breakout of the crucial resistance around 18,400 levels. The index has been making higher lows in the last three sessions. Today’s upside was partly led by the winding up of short positions on the monthly derivatives expiry day.
“Now, Nifty has to hold above 18350 zones for an up move towards 18600, then 18881 zones, whereas supports are placed at 18250 and 18188 zones,” said Chandan of .
The daily momentum indicator RSI remains in a positive crossover. India’s VIX was down by 4.01% from 14.04 to 13.48 levels. Volatility has been cooling off for the last eight weeks and supported the bulls at higher zones.
Analysts say Nifty could now head towards its all-time high of 18604, while the 18325-18410 band could provide support.
What should traders do? Here’s what analysts said:
Rupak De, Senior Technical Analyst at

The trend looks positive as long as it sustains above 18,350 Going forward, 18350 may provide immediate support. On the higher end, resistance is visible at 18650, above which Nifty may move up further.
Ajit Mishra, VP – Research, Broking

Markets have reclaimed buoyancy, and we expect the tone to continue; however, participants shouldn’t go overboard and continue with selective buying. The banking and IT pack look firm to us while others are seeing a mixed trend. We reiterate our preference for index majors and quality midcaps and suggest focusing more on overnight risk management.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by

The benchmark index is now eyeing an all-time high of 18604. This will be the make or break level to be monitored on a closing basis, which will determine further course of action not only from a short-term perspective but also for the medium term. The immediate support zone shifts higher to 18400-18380.
Nagaraj Shetti, Technical Research Analyst, Securities

After choppy movement, buying finally emerged in the market at the highs and the immediate resistance of 18,400 has been taken out on the upside. The Nifty is expected to move above another landmark of 18606 levels (an all-time high of Oct 21) and to form new all-time highs in the short term. Immediate support is placed at 18400.
Shrikant chouhan, Head of Equity Research ( Retail), Kotak Securities

For traders, as long as the index holds the support of 18400, there are chances it could hit 18600-18700 levels. On the other hand, below 18400, the uptrend would be vulnerable.”
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)