Nifty is currently placed at the hurdle of around 22,800 levels (ascending resistance trend line and 1.618% Fibonacci extension). Though Nifty placed near the hurdle, still there is no sign of any reversal forming at the highs. Immediate support is at 22,615 levels. A decisive move above 22,800 levels is expected to open further upside momentum for the market ahead, said Nagaraj Shetti of HDFC Securities.
Open Interest (OI) data showed the call side exhibited the highest OI at 23,000, followed by the 22,900 strike prices, while the highest OI on the put side was observed at 22,700 strike price. The market will remain shut on Thursday on account of Eid-Ul-Fitr (Ramzan Id).
What should traders do? Here’s what analysts said:
Rupak De, LKP Securities
The resistance zone is placed at 22,700-22,750, while support is at 22,600. A decisive move above 22,750 might induce a rally towards 23,000 in the short term. Since the market appears to be range-bound, buying on dips and selling on rallies might prove to be a good strategy with proper stop-loss measures.
Mandar Bhojane, Choice Broking
Both the daily and hourly momentum indicators exhibited a positive crossover, signaling a buying opportunity. Additionally, the daily Bollinger bands displayed an expansion, suggesting an increased range, and with prices trending along the upper band, the possibility of sustained upward movement in the forthcoming trading sessions is implied.
Jatin Gedia, Sharekhan
On the daily charts, we can observe that Nifty consolidated and traded within the range of the previous trading session. Nifty appears to be consolidating after a sharp runup which is a healthy sign. We expect the consolidation to break out on the upside and thus minor degree corrections should be bought into. On the upside, we expect levels of 22,700, which is the upper end of the rising channel.
On the downside, crucial support is placed at 22,400 – 22,350.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
