The short-term trend of Nifty continues to be down and one may expect more weakness in the short term. The next crucial lower support to be watched is around 23,500, which is the 200-day EMA. Any bounce back from here could find strong resistance around the 24,200 levels, said Nagaraj Shetti of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 24,000 and 24,100 strike prices, while on the put side, the highest OI was at 24,000 strike price followed by 24,900.
What should traders do? Here’s what analysts said:
Jatin Gedia, Sharekhan
On the daily charts, we can observe that the five-day consolidation range has broken down, suggesting the resumption of the downtrend. On the downside, the Nifty is likely to drift towards the 23,600 – 23,650 zone where the 40-week average is placed. On the upside, crucial resistance is placed at 24,368.
Rupak De, LKP Securities
The Nifty has corrected below 24,000 as the index slipped from its recent consolidation pattern. Sentiment will likely remain weak in the short term or until it decisively moves above 24,100. It might extend its correction towards 23,650 and lower on the lower end. On the other hand, a decisive move above 24,100 could trigger a rally towards 24,500.
Mandar Bhojane, Choice Broking
Currently, the Nifty is trading below the 100-day Exponential Moving Average (EMA), raising the likelihood of further corrections toward the 23,650 level. For investors, this market correction presents an opportunity to acquire quality stocks at lower levels, particularly if the Nifty can hold above the critical support zones of 24,000 and 23,650. These levels may provide strong buying opportunities for long-term growth as the correction nears its conclusion. Looking ahead, if the market stabilises, the Nifty is projected to target levels of 25,500 and 26,500, offering significant upside potential for long-term investors.
Nandish Shah, HDFC Securities
Nifty broke below the previous swing low of 24,073 and 23,893, made on 25th October 2024 and 5th August 2024 respectively. The trend of the Nifty remain down as it is placed below 10,20,50 and 100 days EMA. Immediate support for Nifty is seen at 23,816, below which it could further fall to 23,502. On the higher side, 24,300 is expected to act as a stiff resistance.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
