The near-term uptrend status of Nifty remains intact. Present range-bound movement could eventually result in an upside breakout of the hurdle at 25,400 levels over the period of time. A decisive move above this hurdle is expected to pull Nifty towards the next upside target of 25,800. Immediate support is at 25,100 levels, Nagaraj Shetti of HDFC Securities said.
In the Open Interest (OI) data, the highest OI on the call side was observed at 25,500 and 25,600 strike prices, while on the put side, the highest OI was at 25,000 strike price.
What should traders do? Here’s what analysts said:
Tejas Shah, Technical Research, JM Financial & BlinkXWe need to wait and watch till the high (25,322) or low (25,235) of today’s daily candle is taken out for further direction. The short term moving averages are also below the price action and should continue to support the indices on any decline. Support for Nifty is now seen at 25,175-200 and 25,000-24,950 levels. On the higher side, immediate resistance is at 25,300-325 levels and the next crucial resistance zone is at 25,450-500 levels. Overall, bulls should continue to have an upper hand going forward.Shrikant Chouhan, Kotak Securities
We are of the view that the current market texture is non-directional, perhaps traders are waiting for either side to breakout. For day traders now, 25,350/82,900 would be the immediate breakout level. Above the same, the market could rally up to 25,450-25,500/83,300-83,500. On the flip side, dismissal of 25,200/82,300 may trigger intraday correction. Below 25,200/82,300, the chances of hitting 25,100/82,000 would turn bright. Further down side may also continue which could drag the market till 25,050/81,750.
Hrishikesh Yedve, Asit C. Mehta Investment Interrmediates
Technically, on the daily chart, the index formed a small red candle but is still holding well above the breakout of a rounding bottom pattern, indicating strength. On the downside, the 9-Day Exponential Moving Average (DEMA) and the recent breakout point of the rounding bottom pattern are positioned near 25,070. Thus, any dip around 25,070 should be used to buy Nifty. On the upside, the index may test levels of 25,500-25,600 in the near future.
Rupak De, LKP Securities
Nifty encountered resistance at 25,300, highlighting strong call option writing at that strike. Moving forward, only a decisive move above 25,300 might trigger a rally toward 25,500. On the downside, support is positioned at 25,200 and 25,000.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
