The overhead resistance of key Fibonacci extension, opening upside gap of 4th June, upward sloping resistance line are intact around 23,400-23,500 levels. As long as this hurdle is not taken out decisively on the upside, one can’t rule out the possibility of a downward correction. Immediate support is at 23,200 levels and a move below this area is likely to trigger a quick selloff in the market, said Nagaraj Shetti of HDFC Securities.
Open Interest (OI) data showed that on the call side, the highest OI was observed at 23,500 and 24,000 strike prices. On the put side, the highest OI was at the 23,200 strike price.
What should traders do? Here’s what analysts said:
Jatin Gedia, Sharekhan
On daily charts, we can observe that Nifty has been broadly trading in the range of 23,450 – 23,200 for the last three trading sessions. The hourly momentum indicator has a negative crossover and thus the rallies are fizzling out at higher levels. The ideal strategy would be to buy on a dip around 23,150 – 23,100 where support in the form of the 40 hour moving average is placed. On the upside, 23,400 – 23,450 remains the target zone.
Tejas Shah, JM Financial & BlinkX
Nifty is facing a lot of resilience around 23,340-350 levels on an immediate basis and we need to witness a decisive close above 23,350 levels for further strength in Nifty. Support for Nifty is now seen at 23,200 & 23,000 levels. On the higher side, immediate resistance is at 23,350 levels & the next resistance is at 23,500.
Rupak De, LKP Securities
The short-term trend remains positive as the index stayed above 23,300. In the near term, the index might continue consolidating within the 23,300-23,500 range. A decisive breakout above 23,500 could trigger a rally towards 23,800.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
