Nifty is holding its position above the previous resistance zone of 22,590, which is now acting as a crucial support level. Immediate support is seen at 22,500, suggesting that any minor pullback could present a buying opportunity at this level. If the upward momentum continues, the index might move towards 22,750, with the potential to breach its all-time high of 22,794.70, said Om Mehra of SAMCO Securities.
An analysis of Nifty put options reveals a concentration of Open Interest (OI) at the 22,500 level, implying potential support at this level. On the call side, significant OI concentrations are observed at the 23,000 and 23,100 levels.
What should traders do? Here’s what analysts said:
Rupak De, LKP Securities
Nifty continues to trend bullishly, finding support at 22500. The index has been moving higher within a rising channel. The trend is likely to remain strong as long as it stays above 22,500. On the higher end, the index might move towards 22,800 in the short term, with immediate support at 22,600. A dip below 22,600 might briefly take the index towards 22,500.
Shrikant Chouhan, Kotak Securities
Higher bottom formation on intraday charts and positive consolidation on daily charts suggesting strong possibility of a further uptrend from the current levels. For trend-following traders, 22,500/73,900 would act as a key support level. Above the same, it could rally till 22,700-22,735/74,500-74,600. On the flip side below 22,500/73,900, the uptrend would be vulnerable. Below 22,500/73,900, we could see one quick intraday correction till 22,400-22,380/73,600-73,500.
Tejas Shah, Technical Research, JM Financial & BlinkX
Our 1st target of 22,600 was achieved in today’s trading session. We believe that the rally in Nifty is likely to continue and it can retest the previous all-time high levels of 22,800 on the higher side. The short-term moving averages are just below the price action and should continue to support the indices on any decline. Support for the index is now seen at 22,550 and 22,400 levels. On the higher side, the crucial resistance zone for Nifty is at 22,750-800 levels (previous all-time high) and the next psychological resistance is at the 23,000 mark. 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)