Tech View: Nifty forms long bull candle for 2nd day. How to trade on Thursday

Amid optimism surrounding Trump’s victory in the US election, Nifty ended Wednesday’s session with a gain of 271 points to form a long bull candle for the second day. Analysts said key overhead resistance of 24,500 could open more upside ahead.

The underlying short-term trend of Nifty continues to be positive. A sharp upside breakout of immediate resistance of 24,500 levels is likely to open the next upside target of 25K mark in a quick period. Immediate support is placed at 24,350, said Nagaraj Shetti of HDFC Securities.

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

Nandish Shah, HDFC SecuritiesNifty has closed above its 10-day EMA for the first time since the start of this downtrend, which is a sign of bullish trend reversal.

Next resistance for Nifty is seen in the band of 24,650-24,700 which happens to be the major swing low registered in October. Support for the Nifty now shifts up at 24,300 and with that stop loss long positions should be held.

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Osho Krishan, Angel One

The recent price action signifies an initial sign of trend reversal. However, one must refrain from being carried away as a decisive breakout above 24,500 is yet to happen, which may further propel the index towards 24,700-24,800 in the comparable period. On a positive note, we’re seeing a constructive upward shift in the support level around 24,200, which is likely to provide stability against any intraday fluctuations during the weekly settlement session for Nifty.

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