Tech View: Nifty bulls eye 22K next week. What traders should do

So long as the index is buying and selling above 21,750, the breakout texture is prone to proceed. Above the identical, the market might transfer up until 22,100-22,200. On the flip aspect, beneath 21,750 merchants could favor to exit from the buying and selling lengthy positions. Beneath which, the index might retest the extent of 21,650-21,575, stated Amol Athawale of Kotak Securities.

Momentum indicator RSI has additionally offered a purchase crossover, additional confirming the bullish sentiment available in the market.

What ought to merchants do? Right here’s what analysts stated:

Kunal Shah, Senior Technical & By-product Analyst at LKP SecuritiesNifty exhibited important power, securing a notable breakout on the every day chart because it surpassed the important thing resistance stage of 21,800. This bullish transfer positions the index for potential short-term targets of twenty-two,000 and 22,200. Merchants are suggested to contemplate shopping for alternatives on any dips towards the help stage.

Jatin Gedia, Sharekhan

Nifty opened gap-up and traded with a optimistic bias all through the day to shut with good points of ~260 factors. On the every day charts, we will observe that the Nifty has decisively damaged out of the 21,500 – 21,850 vary on the upside. The breakout suggests a resumption of trending strikes on the upside. We anticipate the index to focus on ranges of twenty-two,000 instantly and above that 22,300. On the draw back, the zone of 21,750 – 21,700 shall act as a right away help as per the position reversal precept.

Ashwin Ramani, SAMCO Securities

Sturdy put writing (bulls’ entry) was noticed at 21,700 & 21,800 strikes in Nifty. Sturdy put writing at a selected strike worth is often thought-about as an indication of resistance getting weaker. The bulls dethroned the bears from 21,800 strikes in Nifty. The choice exercise at 22,000 strike will present cues about Nifty’s intraday course on Monday. The resistance for Nifty shifts to 22,500 stage from 21,800 stage after Friday’s shut.