If the index holds 23,460, a short-term pullback towards 23,800-23,900 is possible. On the higher side, the index will find resistance near the 23,930 mark, where its 200-DSMA is located. Sustaining below 23,460 could trigger weakness towards 23,300-23,200 levels, said Hrishikesh Yedve of Asit C. Mehta Investment Interrmediates.
According to the open interest (OI) data, the highest OI on the call side was observed at 23,550 and 23,600 strike prices, while on the put side, the highest OI was at 23,500 strike price followed by 23,550.
What should traders do? Here’s what analysts said:
Jatin Gedia, Mirae Asset SharekhanOn the daily charts, we can observe that the Nifty is trading at a trendline support derived by joining the previous couple of swing lows. The zone of 23,550 – 23,500 shall act as a make-or-break zone for the Nifty. A breach below can lead to a decline towards 23,263 (November 2024 low) and below that towards the psychological level of 23,000. On the upside, the key hourly moving averages placed at 23,631 – 23,702 shall act as an immediate hurdle.
Vatsal Bhuva, LKP Securities
The Nifty index closed slightly above its critical support at 23,500 on Thursday, forming a bearish candlestick below the 200-day EMA, signalling caution. A follow-up breach below 23,500 would validate a sell-on-rise strategy, with further downside expected. Conversely, holding this support may lead to consolidation. For the short term, 23,500 acts as a key support, while resistance is placed at 23,800, capping any upside. Traders should monitor these levels closely, as they will dictate the index’s immediate directional trend.
Hardik Matalia, Choice Broking
On the daily chart, the Nifty index formed a strong bearish candle, indicating significant selling pressure from higher levels following a flat opening. This pattern suggests the potential for continued bearish momentum, especially if key support levels are breached. The index failed to sustain higher levels and closed near the 23,500 mark, signalling caution. A breakdown below this support could trigger extended selling pressure, potentially dragging the index toward the 23,200–23,000 range. On the upside, immediate resistance is observed at 23,700, followed by a critical hurdle near 23,850. A sustained close above these resistance levels would be necessary to negate the prevailing bearish sentiment and confirm a bullish reversal.
Praveen Dwarakanath, Hedged.in
Nifty again tested its critical support at the 23,500 level on Thursday, making the support weaker, a break of the support is likely in the coming days. The momentum indicators on the daily chart also show reduced momentum on the upside, suggesting a continuation of the fall. The index formed an insider candle, indicating no clear sign until the support at 23,500 is taken off. Options writer’s data for the January monthly expiry showed increased writing of the calls at the 23,400 and above levels and writing of puts at the 23,500 level, indicating support at the 23,500 level.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
