NIFTY Trading Strategy: Break from 22,700 can be sophisticated to 22,500: Analysts take

Technical diagrams point out a bearish trend for the Nifty this week, whereby the market is likely to remain volatile due to the expiry of the derivations in February derivative contracts. According to technical analysts, a crucial interruption under 22,700 could trigger the next stage of the downward trend for the sophisticated trigger and possibly draw the index to 22,500. Dealers can consider Bajaj Finance, Balkrishna Industries, Hindalco, Nalco, Tata Steel, Sail, IOC and ONGC for short -term long opportunities, according to analysts.Rajesh Palviya
Main technology derivatives, Axis Securities

Where is it going?
On the weekly table, Nifty has formed a small bear candle with a long upper shadow, which points out that the pressure on a higher level has the sales pressure. The support appears near 22,700-22,600, which is the latest deep. The weekly diagram suggests that the retreat level of 38.2% from March 2023 to September 2023 will probably serve as strong support at 22,650. A decisive break below this level could accelerate the downward impulse to 22,500-22,400, while it can trigger a relief rally towards 23,215, which corresponds to the 20-day simple sliding average (SMA). From a technical point of view, the post-stop could generate over 23,000 purchase interest and drive the index to 23,200-23,500. Conversely, the sales pressure can intensify if the index breaks under 22,700, which caused the NIFTY to extend to 22,500-22,300.

What should investors do?
Dealers can initiate a moderately bearish strategy for the PUT -SREAD with a reduced premium sequence and lower Breakeven point from February 27, where you will buy a lot of 22,800 strike to 132 rupees and at the same time sell a lot of 22,600 strikes with 61 RS, so that this network, according to this network, according to this network, according to this network, according to this network, is that this network is taken over or The maximum loss is restricted to up to 5,325 rupees. After expiry, the strategy will make a profit when Nifty concludes on 22,729. The maximum profit is restricted at 9,675 rupees, since the profits of the long 22,800 strike are compensated for by the 22,600 strike sold if Nifty closes below 22,600 closures.Nagaraj Shetti
Senior Technical Research Analyst, HDFC SecuritiesWhere is this week going?
After Nifty had a huge impact in the last sessions in the last sessions, Nifty slipped into weakness on Friday and closed the day, the day was deeper, in the middle of chopped movements. A small negative candle with small upper and lower shadows was formed on the daily diagram. Technically speaking, this pattern indicates the formation of a candle pattern with a high wave type. Usually such a high wave formation in the fluid lows signals high volatility on the market and a confused state of mind among investors. Nifty is currently supporting crucial support for around 22,700 levels (38.2% Fibonacci withdrawal), but shows no strength to lift back.

What should an investor do?
The underlying trend remains chopped off. A crucial downhill outbreak of 22,700 could open a further decline to 22,450 levels. The immediate hurdle, which is observed on the reversal of the trend on the top, is around 23,000 to 11:100 p.m. One can try to create short positions in refined or stocks for the sharp downward outbreak of 22,700 for the target of 22,450. However, a sustainable upward trend over 23,100 to 23,150 values ​​could signal an outcome for the short positions and the creation of longs on the market. Shares with positive distortion include Tata Steel, Sail, Hindalco, Nalco, IOC and Ongc; While shares with negative distortion are Wipro, HCL Tech, M&M, Bharat Forge, Glenmark and Biocon.

Ajit Mishra
SVP Research, Religious Broking

Where is this week going?
Nifty acted within a narrow area last week and ended almost half a percent lower, which extended the ongoing correction phase. The upcoming holiday shortcut will probably remain fleeting due to the course of the derivative contracts in February.

On the benchmark front, a crucial break under 22,700 Nifty could trigger the next leg of the downward trend and possibly pull the index to 22,500 and then 22,000. On the other hand, a recovery would initially be exposed to 23,150 resistance, and an outbreak above this level could expand the profits towards the next major hurdle of 23,600.

What should investors do?
We repeat our perspective to concentrate on banking and IT, since these sectors have shown a relatively higher strength during the correction and the key to determining the next direction of the market will be.

Among other things, metals and energy have another potential for relaxation, while Pharma is susceptible to more disadvantages. On the wider market, retailers should not read too much into the recent back rash and use a further relaxation to reduce the positions and wait for clear signs of a trend reversal.

From a technical point of view, retailers Bajaj Finance, Balkrishna Industries, Chambal fertilizer, Hindalco, Indigo, Nalco and sail can be considered for short-term long-term long-term trading opportunities. For shorts, Apollo Hospitals, Coforge, Glenmark, Granules, Grasim, Hul, Lupin and Sun Pharma are potential candidates.