The crucial hurdle of 25,000-25,100 levels remains intact and the index was not able to break above this area decisively. Chances of further consolidation or minor dip are not ruled out in the short term. Immediate support is at 24,750 levels, said Nagaraj Shetti of HDFC Securities.
Open Interest (OI) data showed that the highest OI on the call side was at 25,200 and 25,500 strike prices, while on the put side, it was concentrated at 24,500 strike prices.
What should traders do? Here’s what analysts said:
Tejas Shah, Technical Research, JM Financial & BlinkX
Support for Nifty is now seen at 25,000 and 24,775-800 levels. On the higher side, immediate resistance for Nifty is at 25,075-100 levels and the next crucial resistance is at 25,250-300 levels. Overall, more follow-up strength can be expected in Friday’s trading session.
Rupak De, Senior Technical Analyst, LKP Securities
The sentiment remains positive as it closed above the short-term moving average. The RSI is in a bullish crossover while entering the overbought zone, indicating the possibility of profit booking. On the lower end, support is placed at 24,900. On the higher end, resistance is placed at 25,100/25,250.
Jatin Gedia, Sharekhan
On the daily charts, we can observe that Nifty has broken out of a sideways consolidation on the upside. This breakout suggests resumption of up move after a brief pause. We expect the rally to continue towards 25,330 – 25,530 from a short-term perspective. Crucial support now stands at 24,850 – 24,800. Divergence between the daily and hourly momentum indicators can lead to a consolidation.
However, price action is suggesting a breakout and hence we shall assign more weightage to price action and continue to maintain our positive outlook.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)