A reasonable bull candle was formed on the daily chart. The short-term trend of Nifty continues to be positive. Nifty is now heading towards the upside target of 26250 (1.618% Fibonacci Extension) in the near term. Immediate support is at 25750, said Nagaraj Shetti of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 26,000 and 25,900 strike prices, while on the put side, the highest OI was at 25,800 strike price followed by 25,900.
What should traders do? Here’s what analysts said:
Jatin Gedia, SharekhanOn the daily charts we can observe that the Nifty is rising steadily towards the upper end of the rising channel 26000 – 26100 zone. The divergence on the daily and hourly time frame momentum indicator is hinting towards caution however until there is specific evidence of a weakness on the price front, we shall continue to ride the up move with a trailing stop loss mechanism which should be kept at 25,700.
Hrishikesh Yedve, Asit C Mehta Investment Interrmediates
Technically, the index is oscillating within a rising channel and is trading near the upper trend line resistance of the channel pattern, which is around 25,900-26,000 levels, making them a strong hurdle in the short term. Therefore, on the upside, 26,000 will act as an immediate hurdle for Nifty. If the index sustains above 26,000 it could test the 26,200 levels. On the downside, 25,600 will serve as an immediate support for Nifty.
Tejas Shah, JM Financial & BlinkX
The bulls are in full control of the markets at the current juncture and are using every minor correction to create long positions. The short-term moving averages are also just the price action and should continue to support the indices on any decline. Support for Nifty is now seen at 25,850 and 25,650-700. On the higher side, the next psychological resistance is at 26,000 Mark. Overall, the bulls should continue to have an upper hand going forward.
Rupak De, LKP Securities
The Nifty continues to climb, making new highs daily. The sentiment remains positive, suggesting a potential rise towards 26,200 in the near term. On the downside, the Nifty may find support around the 21-EMA on the hourly time frame, currently positioned at 25,700. The RSI has given a falling trendline breakout on the daily timeframe. The positive sentiment is likely to persist as long as the index stays above this critical moving average(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)