“The short-term trend of the Nifty seems to have reversed up and the Nifty is currently placed at the crucial resistance of 25,200 levels. A decisive move above this hurdle could only open further upside towards the new all-time highs. Immediate support is at 24,900,” said Nagaraj Shetti of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 25,100 and 25,200 strike prices, while on the put side, the highest OI was at 25,000 strike price followed by 24,900.
What should traders do? Here’s what analysts said:
Hrishikesh Yedve, Asit C Mehta Investment InterrmediatesThe index, on a daily scale, has encountered trend line resistance and formed a green candle. As long as it remains below the trend line resistance, which is around the 25,150 level, caution is advised on the upside. Traders are recommended to create fresh long positions only if the Nifty sustains above 25,150.
Tejas Shah, JM Financial & BlinkX
For Nifty, the short-term moving averages i. e. 10- and 20-day EMAs are below the price action and should continue to support the indices on any decline. Any immediate decisive closing above 25,000-050 levels should bring back fresh buying momentum. Support for Nifty are now seen at 25,000 and 24,800-850. On the higher side, the immediate resistance zone for Nifty is at 25,100-130 levels and the next crucial resistance zone is at 25,300-325 levels.
Jatin Gedia, Sharekhan
On the daily charts, we can observe that the Nifty has witnessed a recovery from the support cluster of 24,800 – 24,850. On the upside, it has now reached the zone of 25,100 – 25,150, where resistance in the form of 61.82% Fibonacci retracement level is placed. The divergent signal from the daily and hourly momentum indicators is also pointing towards a near-term consolidation. Thus, price and momentum indicators suggest a consolidation and the range is likely to be 24,800 – 25,200.
Rupak De, LKP Securities
Nifty remained volatile throughout the day, unable to sustain levels above 25,100. The RSI remained in a bearish crossover on the daily timeframe, indicating continued weakness. Sentiment is expected to stay weak in the near term unless Nifty manages a close above 25,100. On the lower side, support is seen at 24,900; if breached, the index may decline further towards 24,750.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)