Positive chart pattern like higher tops and bottoms is intact. The underlying trend of Nifty remains positive. The market is racing towards the next upside target of 24,400 levels in the near term. Immediate support is placed at 23,980 levels, said Nagaraj Shetti of HDFC Securities.
Open Interest (OI) data showed that on the call side, the highest OI was observed at 24,500 and 24,700 strike prices. On the put side, the highest OI was at 24,000 strike price.
What should traders do? Here’s what analysts said:
Rupak De, LKP Securities
Nifty remained in the bulls’ grip as the index sustained above 24,000 in the initial trades, leading to a rally towards 24,150. Continuous short build-up by the put writers has been protecting the market from falling. Going forward, the trend might remain strong as long as it stays above 24,000. A fall below 24,000 might lead to a correction towards 23,850/23,700. On the other hand, a decisive move above 24,200 might take the index towards 24,500.
Shrikant Chouhan, Head Equity Research, Kotak Securities
Technically, after muted open the market took the support near 24,000/79,000 and bounced back sharply. On daily charts, it has formed a bullish candle and on intraday charts, it is holding higher bottom formation, which is largely positive. We are of the view that, the short-term texture of the market is positive but due to temporary overbought conditions, we could see some profit booking at higher levels. For traders now, 24,000/79,000 would act as a sacrosanct support zone. While 24,200-24,300/79,700-80,000 could be the immediate profit, booking zones for the day traders. On the flip side, below 24,000/79,000 traders may prefer to exit out from the trading long positions.
Tejas Shah, JM Financial & BlinkX
We need to wait and watch till the high (24,164) or low (23,992) of today’s daily candle is taken out for further direction on Nifty in today’s trading session. The bulls are in full control of the markets at the current juncture and are using every intraday correction to create long positions. The short term moving averages are below the price action and should continue to support the indices on any decline. Support for Nifty is now seen at 24,000 and 23,750-800 levels. On the higher side, immediate resistance for Nifty is at 24,175 level and the next resistance is at 24,300 level. Overall, all dips should be used as an opportunity to buy.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)