The short-term trend of Nifty remains weak, but the market is showing signs of sustainable upside recovery after a small downward correction. Nifty needs to cross above the hurdle of 25,150 levels to consider a possible trend change in the upward level. Immediate support is at 24,750, said Nagaraj Shetti of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 25,000 and 25,100 strike prices, while on the put side, the highest OI was at 24,800 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 Nifty has tested and held on to the support zone 24,850 – 24,800, which coincided with the 20-day moving average and the 38.2% Fibonacci retracement level. Monday’s low of 24,750 shall be the stop loss for the long positions and a breach below it shall lead to a trend reversal from a short-term perspective. The immediate hurdle on the upside is placed at 25,000 – 25,100.
Rupak De, LKP Securities
Technically, Nifty remains a sell on the rise as long as it remains below 25,100. On the higher end, the 25,000-25,100 range may act as crucial near-term resistance, where sellers could re-enter. On the lower end, support is placed at 24,800-24,785, below which selling might increase.
Tejas Shah, JM Financial & BlinkX
As long as Nifty is holding above 24,800-850 levels, there is no major sense of panic. However, it is likely to find resistance in the 25,000-25,050 area on an immediate basis. Any immediate decisive closing above 25,000-050 levels should bring back fresh buying momentum. Support for Nifty is now seen at 24,800-850 and 24,600. On the higher side, immediate psychological resistance for Nifty is at 25,000 mark and the next resistance zone is at 25,150-200 levels.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)