Technically, Nifty formed a green candle on the daily chart, indicating strength, with immediate resistance near 23,340, where the 21-day Simple Moving Average (21-DSMA) is placed, and strong support at 23,000. As long as Nifty holds above 23,000, a short-term pullback toward 23,340 and 23,500 remains possible, favoring a buy-on-dips strategy, said Hrishikesh Yedve of Asit C. Mehta Investment Interrmediates.
In the open interest (OI) data, the highest OI on the call side was observed at 23,500 and 23,300 strike prices, while on the put side, the highest OI was at 23,000 strike price followed by 23,200.
What should traders do? Here’s what analysts said:
Satish Chandra Aluri, Lemonn Markets Desk
Benchmark indices edged higher on Thursday in a volatile session as markets extended their gains for the third consecutive day ahead of the Budget session. Markets opened flat after overnight losses in Wall Street led to a cautious start as the US Fed kept the benchmark rates steady, as widely expected but indicated a prolonged pause before another rate cut. This led to weakness in IT stocks, as they are most exposed to the US while a steady rally in PSE stocks and realty along with infra and consumer stocks on budget hopes helped the market to cross the 23,300 level. It’s a classic pre-budget move in sectors as investors gear up for budget with expectations of infrastructure spending and tax relief. Technically, the Nifty 50 closed near 23,250 with immediate resistance on the upside around 23,300 level.
Rupak De, LKP Securities
The Nifty remained volatile within a defined range on expiry day. The daily RSI is in a bullish crossover, signifying strong momentum. However, the index is facing resistance near the upper boundary of the falling wedge as well as the 21EMA on the daily timeframe, suggesting a possible retracement in the near term. Support is seen at 23,200, and a break below this level could trigger a decline towards 23,000. On the other hand, a decisive move above 23,300 might push the index towards 23,500.
Chandan Taparia, Motilal Oswal
This week nifty traded in a narrow range of 300 points, showing no clear direction. The tug of war between bulls and bears led to the formation of multiple Doji candles and inside bars on the daily chart indicating indecision. On the weekly chart, the index has formed a Doji candle indicating support-based buying, but with limited upside potential. Option data suggests a broader trading range in between 23,200 to 24,200 zones while an immediate range between 23,500 to 23,900 levels.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
