The near-term uptrend status of the market remains intact. But the market seems to have started signs of profit booking around 24,400-24,500 levels. However, a move above 24,465 could negate this bearish setup. Immediate support is at 24,150 levels, Nagaraj Shetti of HDFC Securities said.
Open Interest (OI) data showed that on the call side, the highest OI was observed at 24,500 and 24,600 strike prices, while on the put side, the highest OI was at 24,000 strike price.
What should traders do? Here’s what analysts said:
Shrikant Chouhan, Head Equity Research, Kotak Securities
We are of the view that, today’s day low or 24,150/79,400 would act as a key support zone for the day traders. If the index succeeds to trade above the same, then it could retest the level of 24,450/80,500. Further upside may also continue which could lift the index till 24,500-24,550/80,700-80,900. On the flip side, below 24,150/79,400 selling pressure is likely to accelerate. Below which the market could slip till 24,050-24,000/79,100-78,800.
Rupak De, Senior Technical Analyst, LKP Securities
Heavy call writing coupled with decent put unwinding ahead of the weekly expiry suggests the possibility of a correction. Immediate support is placed at 24,270. Below 24,270, the Nifty might fall towards 24,100-24,000. On the higher end, resistance is placed at 24,350-24,400. Expect another round of short covering above 24,400.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)