The short-term trend of Nifty is still positive, but the display of lack of strength in the present upside bounce is likely to result in further weakness near recent lows, before showing another round of upmove. Immediate resistance to be watched at 25,250, said Nagaraj Shetti of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 25,100 and 25,000 strike prices, while on the put side, the highest OI was at 25,000 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 Nifty is in a pullback mode after correcting 1,500 points. we believe that the pullback is not complete and there is scope for further upside till 25,350 – 25,500. Hence the intraday corrections should be used as a buying opportunity. One should keep a stoploss of 24,800 for the long positions.Hrishikesh Yedve, Asit C Mehta Investment Intermediates
Technically, on the daily chart, the index formed a small red candle followed by an insider bar candlestick and is still holding above short-term trend line support. As long as the index holds above the low of 24,690, levels of 25,150–25,350 could be possible. However, a close below 24,690 could lead to a fresh breakdown.Rupak De, LKP Securities
The Nifty opened higher but struggled to maintain gains, leading to a weaker close. On the hourly chart, the index closed just above the 20DMA, indicating that the very short-term trend remains positive and is likely to stay so as long as it holds above 24,940. However, a drop below 24,940 could trigger a correction down to 24,800/24,700. On the upside, 25,100 may act as resistance.
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