The short-term trend of Nifty continues to be negative. The market is now placed at the support of around 22,700-22,650 levels (near 38.2% Fibonacci retracement). Immediate resistance is at 23,000 levels, said Nagaraj Shetti of HDFC Securities.
According to the open interest (OI) data, the highest OI on the call side was observed at 23,000 and 22,900 strike prices, while on the put side, the highest OI was at 22,800 strike price followed by 23,900.
What should traders do? Here’s what analysts said:
Mandar Bhojane, Choice Broking
On the technical front, the Nifty broke down from a 10-day consolidation phase, closing near the critical support level of 22,800. This indicates strong bearish momentum in the market. If the index sustains below 22,800, further corrections could take it towards the 22,500 and 22,200 levels. On the upside, immediate resistance is seen at 23,100 and 23,300, where the highest call open interest (OI) is concentrated. Failure to breach these resistance levels could maintain the bearish trend. Investors are advised to monitor key support and resistance levels closely, as a breach of 22,800 on the downside or a breakout above 23,100 could determine the next directional move.
Satish Chandra Aluri, Lemonn Markets Desk
Benchmark indices extended losses and fell sharply on Monday on familiar concerns around earnings with broader mid and smallcap indices facing the extended rout as they continued to underperform. Technically, Nifty 50 broke the crucial 23,000 level and is currently holding above the 22,800 level, which can act as immediate support.
Rupak De, LKP Securities
The index has slipped from its recent consolidation on the daily chart, heightening pessimism across the Indian equity market. The sentiment is likely to favour bearish trades in the short term, particularly as long as the index remains below 23,000. On the lower side, the prevailing weakness could potentially lead to a decline toward 22,500.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
