If Nifty sustains below 24,690 level, further downside could be likely, taking it towards 24,500–24,400 levels. On the upside, immediate resistance is positioned at the psychological level of 25,000, followed by the 21-day Exponential Moving Average (21-DEMA) at 25,185, 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 24,750 and 254,800 strike prices, while on the put side, the highest OI was at 24,750 strike price followed by 24,700.
What should traders do? Here’s what analysts said:
Praveen Dwarakanath, Hedged.inNifty has broken its consolidation range and closed very near its critical support at 24,700 levels. A close below the 24,700 can open up room for the 24,000 level. Although the ADX DI- line is sloping upside, the ADX average line is sloping down and the RSI on the daily chart is in the over-sold region, indicating a halt in the fall or a small dead cat bounce in the index from its current support at 24,700 levels.
Options writer’s data for this month’s expiry showed increased call writing above 24,800 levels and a short covering of 25,000 puts, indicating weakness in the index.
Rupak De, LKP Securities
The Nifty has found initial support in the 24,700–24,750 zone. On the daily chart, the Nifty has broken down from a bearish flag pattern, suggesting a possible downward move in the short term. The RSI is showing a bearish crossover and is declining. However, this may not be the ideal level to initiate short positions, as the index has experienced a steep correction and is near a double-bottom support, which could trigger a near-term recovery toward 25,000. Conversely, a decisive fall below 24,700 could lead to a significant correction in the market.
Tejas Shah, JM Financial & BlinkX
Technically, the Nifty Index was just consolidating in a narrow range i. e. between 25,250 and 24,950 for the past few days and it gave a mini breakdown in Thursday’s trading session once it closed below 24,950 levels. Support for Nifty is now seen at 24,700-750 and 24,500. On the higher side, immediate psychological resistance for Nifty is at 25,000 mark and the next crucial resistance zone is at 25,250-300 levels. Overall, the bears should continue to have an upper hand going forward.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
