Nifty Forms Long-Legged Doji Candle. What Should Traders Do in Election Result Week?

Nifty ended a five-day losing streak by forming a long-legged Doji candle on the daily charts, closing 42 points higher at 22,531.

The 50-day moving average (DMA) is around the 22,400 level. If Nifty drops below this, it could test the 22,300-22,260 zone. However, if it crosses 22,660, the bullish trend could continue, according to Om Mehra from SAMCO Securities.


On the daily chart, Nifty has bounced back near the 50-day SMA after four days of losses. Analysts say the 14-day RSI is at 50.33, which is falling and below its 9-day EMA, indicating weakening momentum.

What Should Traders Do? Here’s What Analysts Say:

Jatin Gedia, Sharekhan

Nifty consolidated within the previous trading session’s range, forming an inside bar pattern. The key levels to watch are 22,700 – 22,400. A breakout on either side will lead to a move in that direction. The crucial support zone is 22,420-22,313, and the resistance zone is 22,820-22,900 from a short-term perspective.

Rupak De, LKP Securities

The highest call writing is at 23,000, while significant put writing is at 22,500, indicating Nifty might oscillate between 22,500 and 23,000 in the next few days. A fall below 22,500 might trigger a correction towards 22,000.

Tejas Shah, JM Financial & BlinkX

Nifty is trading around a critical support zone of 22,400-500 levels (50-day EMA support area). A sharp movement of 2% to 3% can be expected from this zone, likely upwards. As long as Nifty holds above 22,400-500 levels (+/- 25 points), there’s no major panic. Short-term moving averages should continue to support the index on any decline. Supports are at 22,400-500 and 22,200 / 22,000-50 levels. Immediate resistance is at 22,600-650, with the next resistance zone at 22,825-850 levels.

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