The short-term trend of Nifty continues to be positive amid high volatility. Having moved above the hurdle of 22,250 level (mid-part of Tuesday’s long bear candle) recently, Nifty could move towards the next upper hurdle of 23,200 (upper part of long bear candle) in the near term. Immediate support is at 22,640 level, said Nagaraj Shetti of HDFC Securities.
Open Interest (OI) data showed that on the call side, the highest OI was observed at 23,000 and 23,300 strike prices. On the put side, the highest OI was at 22,000 strike price.
What should traders do? Here’s what analysts said:
Tejas Shah, JM Financial & BlinkX
We need to wait and watch till the high (22,910) or low (22,642) of Thursday’s daily candle is taken out for further direction on Nifty in Thursday’s trading session. Support for Nifty is now seen at 22,650 and 22,400-500 levels. On the higher side, immediate resistance is at 22,850 levels and the next psychological resistance is at 23,000 Mark. Overall, the upside looks limited as far as indices are concerned.
Osho Krishan, Angel One
Nifty50 index has rebounded by more than 61.80% from its recent decline and has successfully advanced above all its major Exponential Moving Averages (EMAs) on the daily chart. The index has returned to its bullish terrain, and the across-board participation certainly depicts the bullish undertone of the market participants. From a technical standpoint, the 20-day Simple Moving Average (SMA) around 22,600 and the 61.80% Fibonacci retracement level of 22,552 are expected to provide a supportive foundation on an intermediate basis. On the higher end, the 2,300 mark withholds the major resilience and needs a cautious stance as we approach the same.
Shrikant Chouhan, Kotak Securities
We are of the view that the index has completed one leg of pullback rally and we could see some profit booking at higher levels. For day traders now, 22,650/74,475 would act as a key support level. As long as the market is trading above the same, positive sentiment is likely to continue. On the higher side, the index could find the resistance at 22,900-23,000/75,290-75,500. On the other side, below 22,650/74,475 uptrend would be vulnerable. Below the same, traders may prefer to exit from long positions.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)