A bearish candle was formed, signalling continued weakness. The current trend indicates a “sell on rise” strategy, with fresh buying suggested only if the index moves above the 26,000 zone. Immediate support is seen at 25,000, followed by 24,750, while 25,500 is expected to act as the immediate resistance. Traders should closely monitor these key levels, as a break below support could trigger further downside, while resistance at 25,500 may cap any short-term recovery attempts, said Hardik Matalia of Choice Broking.
In the open interest (OI) data, the highest OI on the call side was observed at 25,250 and 25,300 strike prices, while on the put side, the highest OI was at 25,250 strike price followed by 25,200.
What should traders do? Here’s what analysts said:
Jatin Gedia, SharekhanOn the daily charts we can observe that the Nifty has closed below the key 20-day moving average (25,508) which is a sign of weakness. The daily momentum indicator has a negative crossover, which is a sell signal. Thus, both price and momentum indicators suggest that the weakness is likely to continue. The initial target of 25,500 has been achieved on Thursday and hence we revise it downwards to 24,800. On the upside 25,600 – 25,550 is the immediate hurdle from short-term perspective.
Rupak De, LKP Securities
The Nifty has experienced a sharp correction, breaking below the support of a rising trendline on the daily timeframe, signalling a potential bearish trend reversal. Additionally, the index has slipped below the 20-day moving average (20DMA), intensifying concerns. The daily RSI has also broken below its rising trendline, further suggesting the possibility of continued downside. Immediate support is located at 25,070, and a breach of this level could see the index decline towards 24,800. On the upside, resistance is positioned in the 25,500–25,550 zone.
Tejas Shah, JM Financial & BlinkX
Technically, the evidence continues to suggest that the markets are likely to remain under pressure in the near term. However, with a large waterfall decline in the last few days some studies have turned slightly oversold on short- term charts and hence it could trigger a minor pullback rally from the support levels. Supports for Nifty are now seen at 25,200-225 and 25,000-050. On the higher side, the immediate resistance zone is at 25,475-500 levels and the next resistance zone is at 25,650-700 levels.
Praveen Dwarakanath, Hedged.in
Nifty is closing below its support of 25,300, indicating a downside in the index from the present levels. A dead cat bounce can be expected from either at the present levels or at 25,000 levels, which is likely to be short-lived. The closing at the present levels or even below 25,500 levels on Friday can trigger further room on the downside till 24,800 levels. All momentum indicators are pointing towards the downside, indicating weakness in the index. Options writer’s data showed increased call writing in the present month’s expiry above 25,500 levels, indicating a weakness in the index to continue below the 25,500 levels.
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