Immediate support was seen at 21,850, a break of which would again tilt the set-up in favor of the bears. One needs to take an open-minded approach in such a scenario. Support for the Nifty is now seen at 22,000 and 21,800-850 levels. On the higher side, immediate resistance for Nifty is at 22,075 levels and the next resistance is at 22,200-250 levels, said Tejas Shah, Technical Research, JM Financial & BlinkX.
Analysis of the Open Interest (OI) data reveals the highest OI on the call side at the 22,100 strike price, followed by the 22,500 strike price. On the put side, the highest OI was observed at the 22,000 strike price.
What should traders do? Here’s what analysts said:
Rajesh Bhosale, Angel One
Nifty has been oscillating within a range defined by the 20 and 50-day EMA since last week. A breakout from this range will likely dictate the next directional move. As of now, with no major traction, prices are expected to remain within this range. Consequently, it is advisable to adopt a cautious approach, focusing on buying on dips and exiting long positions on rallies while the range persists. Immediate support levels are seen at 21,900-21,850, while 21,700 is a key support level. On the upside, resistance is anticipated around 22,200-22,250.
Tejas Shah, Technical Research, JM Financial & BlinkX
For the last many days, Nifty has been stuck within the 21,800-22,200 zone. There have been many attempts both by the bulls and bears to trigger a breakout but both have been unsuccessful so far. It seems only on a close above the resistance zone of 22,200-250 will the bulls be in complete control of the set-up. Till then one will have to be very stock-specific and look at long trades in some of the outperforming stocks/sectors only.
Jatin Gedia, Sharekhan
On the daily charts, we can observe that Nifty is broadly trading in the range of 21,880- 22,200 since the last three trading sessions. The range-bound action is likely to continue in the absence of any near-term triggers. Also, as we near the monthly expiry of the March series derivative contracts, the volatility seems to have dried down resulting in range-bound moves. The contraction of the hourly Bollinger bands also suggests sideways price action. Thus, multiple parameters suggest that Nifty is likely to witness subdued price action over the next few trading sessions. Stock-specific action is likely to continue during this period.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)