Nifty’s struggle to hold above the day’s opening range indicates that the bullish sentiments have gone sore on the Summer Solstice Day, said analyst Rahul Ghose, CEO of Hedgedin.
The increased Call writing of the open interest (OI) at 23,600 and above levels, further indicates the resistance for the June monthly expiry around these levels, he said, adding that the PCR opened at 1.16 and dropped to 0.88 levels. This indicates a range-bound trade for the remaining June series, he added.
What should traders do? Here’s what analysts said:
Om Mehra, SAMCO Securities
Nifty slid as it lacked momentum. It marked a new high of 23,667.10 during the session but settled at 23,501.10, shedding 0.28%. Nifty’s struggle to hold gains after opening higher indicates a weakening momentum. A bearish candle has formed with the day’s high and opening level remaining almost identical.
The 50-stock index breached the rising trendline on the hourly chart from the last swing low. The daily RSI stands at 60, slightly skewing towards the average line. The immediate support remains at 23,300, while resistance is placed near the 23,700-23,740 zone.
Rupak De, LKP Securities
Nifty has been hovering within the 23,300 to 23,600 range, indicating indecisiveness, which sets the stage for a very volatile monthly expiry. A decisive move above 23,600 might take the index towards 24,000 in the short term, whereas failure to hold above 23,300 might trigger panic in the market. Below 23,300, the Nifty might fall towards 22750 in the short term.
Hrishikesh Yedve, Asit C. Mehta, Investment Interrmediates
Nifty opened on a gap-up note, but was unable to sustain on higher levels and settled the day on a negative note at 23,501. Technically, on a daily basis, the index has formed a bearish candle. Moreover, the index wiped out all the weekly gains and settled the week on a flat note, indicating distribution at higher levels. As long as the index holds 23,330 levels, bullish momentum will continue, on the higher side, 23,700 and 23,800 will act as short term hurdles.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
