The short-term trend of the Nifty remains weak amidst range movement. A decisive upside above 23,400 could only open renewed buying enthusiasm in the market. Immediate support is placed at 23,100, said Nagaraj Shetti of HDFC Securities.
According to the open interest (OI) data, the highest OI on the call side was observed at 23,300 and 23,500 strike prices, while on the put side, the highest OI was at 23,200 strike price followed by 23,000.
What should traders do? Here’s what analysts said:
Jatin Gedia, Mirae Asset SharekhanNifty opened gap down and witnessed a volatile day of trade on Friday. Intraday, it witnessed wild swings in both directions and ultimately closed in the red down 109 points. On the daily charts, the counter-trend rally of the last three trading sessions has fizzled out at the 40-hour moving average (23,390) and resumed its fall. On the downside, we expect the Nifty to slip towards the psychological level of 23,000 and below that it can potentially slip towards 22,670. Failure of a follow-through selling pressure on the downside can lead to a consolidation within 23,100 – 23,300.
Rupak De, LKP Securities
The Nifty remained under bearish pressure for yet another session. Sentiment remains weak as the index declined after encountering resistance at a crucial moving average. This bearish sentiment may persist in the short term or as long as the index remains below 23,400. On the downside, it could drift toward 23,000. A decisive break below 23,000 might trigger a broader market correction. Conversely, 23,400 is likely to remain a strong resistance level.
Devarsh Vakil, HDFC Securities
Despite experiencing significant intraday volatility of over 200 points, the Nifty index found crucial support at 23,100, from where it staged an impressive recovery of more than 100 points. While the index shed nearly a per cent this week, it managed to close well above its weekly lows. The Nifty faces immediate support at 23,100, a breach of which could trigger further downside. On the upside, the index may encounter resistance at 23,391 and 23,500 levels.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
