Tech View: Nifty reaching towards key resistance of 17,863. What should traders do on Thursday expiry

Nifty is now gradually advancing towards the crucial overhead resistance of 17,863 levels, which is not only the swing high of April 17 but also the high of a bearish engulfing pattern of daily and weekly time frame charts. Hence, a sustainable move above this hurdle is likely to open sharp upside momentum for the Nifty ahead, said Nagaraj Shetti of HDFC Securities.

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

Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities
The momentum remains strong and one should keep a buy approach and expect targets of 18,000/18,200 in the near term. The monthly expiry indicates resistance at 18,000 where the highest open interest is built up on the call side.

Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
Tomorrow being the expiry of April month derivative contracts, we can expect some volatility. Crucial support zones to watch out for are 17700 – 17680 and on the upside 17860 – 17880 shall act as an immediate hurdle zone and a break above that shall lead to a sharp rise towards the 18,000 psychological mark. Overall, we shall continue to maintain our positive stance from a short-term perspective for the target of 18,100.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Technically, after a reversal formation, the market is hovering between 17,700-17,830 price ranges. For the bulls now, 17,830 would be the range breakout zone. Above this, the index could move up to 17900-17950. On the flip side, the dismissal of 17700 may accelerate the selling pressure. Below this, the index could slip till 17650-17625.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The short-term trend of the market continues to be positive. The Nifty is now reaching the important resistance of 17863 levels in the short term. There is a possibility of minor consolidation movement at the highs before showing a decisive upside breakout in the near term. Immediate support is at 17700 levels.

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