On the higher end, the index may continue to move towards 24,050 in the near term. Meanwhile, support is placed at 23,500, where maximum put writing is visible, said Rupak De of LKP Securities.
According to the open interest (OI) data, the highest OI on the call side was observed at 23,800 and 23,750 strike prices, while on the put side, the highest OI was at 23,500 strike price followed by 23,600.
What should traders do? Here’s what analysts said:
Satish Chandra Aluri, Lemonn Markets DeskBenchmark indices ended marginally lower in a rangebound session on Wednesday ahead of the RBI meeting. Broader mid and smallcaps, however, ended higher again, extending the gains. Nifty 50 opened at the day high of 23,800 level and steadily lost ground in a narrow session where the index moved in a range of 100 points. 23,800 acts as immediate resistance while the 23,600 level is the near-term support.
Praveen Dwarakanath, Hedged.in
Nifty faced resistance at the 21,800 level, indicating weakness in the rally. The momentum indicators on the hourly chart are near the overbought region, indicating a possible sell-off from the current level in the index. The index closed below the Bollinger band on the daily chart, a further closing above the Bollinger band can only show strength in the index. Immediate support for the index is at the 23,250 level. Options writer’s data for the weekly expiry showed increased writing of calls at the 23,700 and above levels, indicating resistance in the index at the current level.
Om Ghawalkar, Share.Market
On Wednesday, Nifty opened with a 60-point gap up at 23,801, reaching an intraday high of 23,807. However, it struggled to sustain its gains and remained under pressure throughout the session, ultimately closing 40 points lower than the previous day’s close at 23,696. The index faced resistance near the 50 SMA, and a breakout above this level in the near term could pave the way for a move toward 24,000—a key psychological level that also coincides with the 200 SMA.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
