As far as resistance is concerned, 23,800-24,000 is likely to be seen as an intermediate hurdle, followed by 24,150-24,300, coinciding with the bearish gap and the cluster of EMAs on the daily charts for the upcoming truncated week, said Osho Krishnan of Angel One.
According to the open interest (OI) data, the highest OI on the call side was observed at 23,700 and 23,800 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:
Kunal Shah, Mirae Asset Sharekhan
On the daily chart, Nifty is trading below the 20-day moving average (DMA) and the 40-DEMA of 24,363 and 24,350, respectively. The momentum indicator has a negative crossover on the daily chart. On the hourly chart, Nifty is trading below the 20-hour moving average (HMA) and the 40-HEMA of 23,962 and 24,135, respectively. The momentum indicator has a negative crossover on the hourly charts. The market breadth was negative with 474 advances and 2,225 declines on the National Stock Exchange.
Nandish Shah, HDFC Securities
Nifty has also violated its 200-day SMA and EMA supports and closed on a weak wicket. The index is in continuation of a downtrend and the only support that is visible on the chart is the swing low of 23,263, made on 28th Nov 2024. 200-day SMA, which is placed at 23,834, is now expected to act as an intermediate resistance for the short term.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
