Tech View: Nifty forms red-bodied candle. What should traders do on Thursday expiry

Present minor weakness or consolidation movement could end up with the formation of another higher bottom at the lows. Hence, the present weakness with range movement could be a buy-on-dips opportunity, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

There is a possibility of further consolidation or minor weakness for the next 1-2 sessions before showing upside bounce from the higher lows. Immediate support is at 17900 levels.

What should traders do? Here’s what analysts said:

Rahul Ghose, Founder & CEO – Hedged
Both the indices going into tomorrow’s expiry have mixed open interest data as the Nifty OI data shows more call open interest, whereas Bank Nifty OI data indicates that more puts are being written. The indecisiveness, owing to the Fed meeting outcome scheduled for later today. After every healthy rally, consolidation is always a good sign.

Rupak De, Senior Technical Analyst at LKP Securities
The sentiment remains positive as the index has sustained above 18000. Over the short term, the index is likely to remain in 18000-18200 range. A decisive move above 18200 may take the index towards 18500.

Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
On the daily charts, we can observe that the Nifty has been trading around the 18100 mark since the past two sessions. The level coincides with the 61.82% Fibonacci retracement level of the fall from 18889 – 16828 and thus, making it a crucial level from a short term perspective and could be one of the reasons for the consolidation since the last couple of trading sessions.The hourly Bollinger bands are contracting, and the hourly momentum indicator is having a negative crossover, also suggesting consolidation is likely. Overall, the uptrend is still intact, and this consolidation should be taken as an opportunity to create fresh long positions.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
As long as the index is above 18050, the uptrend formation is likely to continue. Above the same, the index could move up to 18200-18250. On the other hand, a quick short-term correction is possible if the index slips below 18050, and at the same, it could retest the level of 17950-17925.

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