The underlying trend of Nifty remains choppy with weak bias. The market is moving in a broader high low range of 24,600-23,800 levels. Having declined from the upper range recently, Nifty is expected to witness an upside bounce from near the lower range of 23,800 levels in the short term. Immediate resistance to be watched around 24,300, said Nagaraj Shetti of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 24,300 and 24,200 strike prices, while on the put side, the highest OI was at 24,000 strike price followed by 24,100.
What should traders do? Here’s what analysts said:
Jatin Gedia, SharekhanOn the daily charts, we can observe that the Nifty held on the 24,000 psychological support level. On the upside, the Nifty faced resistance at 24350 around the upper end of the falling channel. So, price-wise a range of 24,000 – 24,350 has been the consolidation range. The daily and hourly momentum indicator has a positive crossover which is a buy signal. Thus, there a signs that the Nifty is gearing up for an upmove for the next few trading sessions. A break below 23,970 is likely to weaken the structure.
Hrishikesh Yedve, Asit C Mehta Investment Interrmediates
Technically, on a daily basis, the index formed a doji like candle, indicating uncertainty. On the higher side, the 100-Days exponential moving average (DEMA) hurdle is placed near 24,430 followed by 24,540, which was last week’s high. On the downside, the 150-Days exponential moving average (DEMA) is placed near 24,990, which will act as short term support for the index followed by 23,800, where the recent swing support is placed. In the immediate term, we expect the index will consolidate in the range of 23,800 to 24,500. A decisive breakout on either side will determine the next direction of the index. Until then, traders should aim to buy near support and sell near resistance.
Tejas Shah, JM Financial & BlinkX
The candlestick (long-legged Doji) pattern formed on the daily chart is not an encouraging one. As long as Nifty is holding above 24K, the present pullback rally which started recently is likely to continue. However, it is facing a lot of resilience around 24,500 to 24,550 levels for the past couple of weeks on an immediate basis and we need to witness a decisive close above 24,500-550 levels for further major strength in Nifty. Support for Nifty is now seen at 24,000 and 23,800. On the higher side, the immediate resistance zone for Nifty is at 24,275-300 levels and the next crucial resistance zone is at 24,500-550 levels.
Rupak De, LKP Securities
The Nifty remained volatile, failing to give any directional breakout. The index oscillated within the range of 24,000-24,350. The momentum indicator RSI shows a bullish crossover. Additionally, on the daily chart, the index has formed an inverted hammer pattern, indicating a possible bullish reversal. On the higher side, the index might move towards 24,500-24,550, while support is placed at 24,000.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
