The candlestick pattern formed on the daily chart is not an encouraging one. The Nifty Index has formed a DOJI candle on its daily chart which indicates indecisiveness prevailing in the marketplace at the current juncture. Support for Nifty is now seen at 24,200 and 23,950-24,000. On the higher side, immediate resistance for Nifty is at 24,350 level and the next crucial resistance zone is at 24,500-550 levels. Overall, Nifty is likely to remain volatile or consolidate within 24,000–24,500 range in the near term, said Tejas Shah of JM Financial & BlinkX.
In the open interest (OI) data, the highest OI on the call side was observed at 24,300 and 24,200 strike prices, while on the put side, the highest OI was at 24,200 strike price followed by 24,000.
What should traders do? Here’s what analysts said:
Jatin Gedia, SharekhanOn the daily charts, we can observe that the Nifty is in the process of retracing the fall it has witnessed from 26,277 – 23,260. We expect the retracement to continue towards 24,770, which coincides with the 50% Fibonacci retracement level. Dips toward support zone 24,120 – 24,070 should be considered as buying opportunity.
Praveen Dwarakanath, Hedged.in
Nifty further gapped up with the positive boost due to the results of state elections. However, it was rejected from the immediate resistance at 23,350 levels. It has formed a doji candle for the day, indicating uncertainty in the rally. Unless Nifty closes above the 24,350 level sustainably, one should continue to hold the view of selling on the rise in the index. The momentum indicators on the weekly are rising from the oversold region, indicating a possible upside towards the immediate resistance at the 23,350 level. Options writer’s data for the monthly expiry showed an increase in the put writing at the 24,300 level and below while a short covering of calls below the 24,100 level, indicating a further upside in the index.
Rupak De, LKP Securities
The Nifty opened with a gap-up on Monday and traded sideways throughout the day. The index has moved above the 21 EMA, indicating improving sentiment. The RSI is in a bullish crossover and trending upward. The sentiment is expected to remain positive in the short term, with buying on dips likely to favor traders. On the higher side, 24,500 is expected to act as a crucial resistance; a decisive move above this level could trigger a further rally. Support on the lower side is placed at 23,950–24,000.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
