Support for Nifty is now seen at 22,675-700 and 22,500 levels. On the higher side, the immediate resistance zone is at 22,825-850 levels and the next psychological resistance is at the 23,000 mark, said Tejas Shah of JM Financial & BlinkX.
The maximum call open interest was placed at 23,000 strike while the maximum put open interest was placed at 22,500 strike.
What should traders do? Here’s what analysts said:
Jatin Gedia, Sharekhan
Nifty is in the process of retracing the rise it has witnessed from 22054 to 23111. The 38.2% Fibonacci retracement level is placed at 22707. We expect the Nifty to recover over the next few trading sessions. We believe that this is a minor degree correction and not a trend reversal.
Rupak De, LKP Securities
During the day, heavy call writing activities were seen at the 23,000 and 22,800 strikes, while put writing activities were visible at the 22,800 and 22,700 strikes. The option data suggests that Nifty might expire around 22,800. On the other hand, a fall below 22,700 might trigger additional selling pressure in the market. Immediate resistance is placed at 22,800.
Osho Krishan, Angel One
Nifty has breached the neckline of the recent breakout and is now heading towards the mean of the ‘Rising channel’ at 22600, followed by the 20-day EMA at 22500, which is to be considered as the crucial support level. On the higher end, the bearish gap of 22825-22860 is to be seen as an intermediate hurdle, while the sturdy wall stays at the 23000 mark.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)