On the derivatives front, the highest call OI is at 19,500 followed by 19,600 strike price while on the put side, the highest OI remains at 19,300 strike price.
On the other hand, Bank Nifty has support at 44,000 levels while resistance is placed at 44,900-45,000, Choice Broking said.
INDIA VIX dip below 12 signifies a potential subsiding of market volatility. Amidst this backdrop, investors are encouraged to exercise prudence, weighing the benefits of profit booking while considering the promising prospect of entering the market for the long haul.
Nifty Futures Open Interest (OI) data indicated a build-up of fresh long positions in Index Futures since August 16. The Foreign Portfolio Investors’ (FPIs) activity remained quiet for the past three trading sessions as indicated by the Long-Short Ratio. The cooling off volatility gave some comfort to the bulls as
India VIX closed 0.17% down at 11.73.
What should traders do? Here’s what analysts said:
Rupak De, Senior Technical analyst at LKP Securities
Nifty continues to trade within the broader range of 19,300 and 19,500. On the daily timeframe, Nifty has been fluctuating between the boundaries set by the 21-day Exponential Moving Average (EMA) at 19,471 and the 50-day EMA at 19,281. Looking ahead, the Nifty is likely to maintain this range-bound movement as long as it remains within these established thresholds. A significant breakthrough above the 19,500 mark could potentially trigger a rally towards higher levels.
Jatin Gedia, Sharekhan
On the daily charts, we can observe that the Nifty is trading exactly around the falling resistance trend line. Considering the number of touchpoints on this trend line increases the importance of this trend line and should be closely watched out for. On the upside, there is multiple resistance in the form of the 20-day moving average (19,529) which shall restrict the up move. The daily momentum indicator has a negative crossover, and this rise could fizzle out.
Overall, we shall continue to maintain our negative outlook on the index though a pullback is likely over the next few trading sessions. Crucial support is placed at 19,370 – 19,350, while Immediate hurdle is placed at 19,520 – 19,550.
Nagaraj Shetti, HDFC Securities
Nifty is currently placed at the crucial resistance of down sloping trend line around 19,450-19,500 levels and is struggling to break decisively above the hurdle. At the same time, the market is not willing to show any reasonable weakness from near the resistance. This market action suggests chances of one more attempt at an upside breakout around 19,500 levels in the short term and any failure to sustain the anticipated upside breakout could open selling pressure from the highs. Immediate support is placed at 19,360 levels.
Shrikant Chouhan, Head of Research (Retail), Kotak Securities
Nifty took support near 19,350 and recouped lost ground thereafter. However, it failed to breach the key resistance level of 19,500. Currently, the index is witnessing a positive consolidation. For day traders, 19,400 would act as a trend decider level and above which, the index could rally to 19,535. On the flip side, below 19,400 the index could retest the level of 19,350-19,315.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)