Nifty formed a high wave type candle on October 28 after a fall hinting at the start of an upward correction. Nifty could now rise to face resistance at 24,567, while the 24,073-24,135 band could offer support in the near term. Sustenance of this upmove over the next few days will be crucial to lead to the return of buying interest from all classes of investors, said Deepak Jasani of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 24,500 and 24,400 strike prices, while on the put side, the highest OI was at 24,200 strike price followed by 24,300.
What should traders do? Here’s what analysts said:
Jatin Gedia, SharekhanOn the daily charts, we can observe that the Nifty has found buying interest from the support zone of 24000 – 24090 where the daily lower Bollinger band is placed. The hourly momentum indicator has triggered a positive crossover and there is a high probability that the counter-trend pullback rally which started today can continue over the next few trading sessions till 24,900 – 24,930 where the key daily moving averages are placed.
Praveen Dwarakanath, Hedged.in
Nifty gave a dead cat bounce from its support of 24100 levels. Immediate resistance for the index is at 24500 levels, a close above which can take nifty towards 24800 levels. However, on the weekly chart, the momentum indicators continue to show weakness in the index. Today’s bounce in the index can be used as an opportunity to sell with a target of 23700 levels which is the next support below 24100 levels. Options writer’s data for the monthly expiry showed increased writing of calls at 24500 and above levels, indicating resistance at 24500 level in the index.
Tejas Shah, JM Financial & BlinkX
As long as Nifty is holding above 24 K, the present pullback rally which started recently is likely to continue. All pullback rallies towards 24,500 / 24,750 are likely to find selling pressure. Support for Nifty is now seen at 24,200 and 24,000. On the higher side, the immediate resistance zone for Nifty is at 24,450-500 levels and the next crucial resistance zone is at 24,700-750 levels.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)