The short-term trend of Nifty remains positive amid range movement. Having bounced back from near the lower range of 23,300 levels, there is a possibility of Nifty testing the upper range of 23,650-23,700 in the short term. Immediate support is at 23,350, said Nagaraj Shetti of HDFC Securities.
Open Interest (OI) data showed that on the call side, the highest OI was observed at 23,700 and 24,000 strike prices. On the put side, the highest OI was at 23,000 strike price.
What should traders do? Here’s what analysts said:
Rupak De, LKP Securities
Nifty slipped lower in early trades, but bulls were able to defend around the 55-EMA on the hourly chart. The trend remains positive for the short term as long as it remains above 23,300, where a buy-on-dips strategy might favor traders. On the higher end, resistance is seen at 23,600. A decisive move above 23,600 might lead call writers to unwind their positions.
Tejas Shah, JM Financial & BlinkX
Nifty formed a bullish candle on the daily chart. The market is respecting both the support and resistance levels. The Nifty closed above the critical resistance level of 23,350 for two consecutive weeks and accordingly we believe that it is likely to test the next resistance zone of 23,750-800 in the next few days. The short-term moving averages are just below the price action and should continue to support the indices on any decline. The bulls are in full control of the markets at the current juncture and are using every minor correction to create long positions. Support for the Nifty is now seen at 23,500 and 23,300-350 levels. On the higher side, the immediate resistance zone is at 23,600-625 levels & the next resistance zone is at 23,750-800 levels.
Jatin Gedia, Sharekhan
On the daily charts, we can observe that the Nifty has been broadly trading in the range of 23,200 – 23,700 for the last 10 trading sessions. Dips towards the lower boundary should be used as a buying opportunity with a trailing stop loss of 23,200. The hourly momentum indicator has triggered a positive crossover, which is a buy signal. Thus, we shall continue to ride the upmove till there is weakness on the price front.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
