The short-term trend of Nifty continues to be positive amid high volatility. Having moved above the hurdle of 22,250 levels (mid part of Tuesday’s long bear candle) recently, the index could move towards the next upper hurdle of 23,200 (upper part of long bear candle) in the near term. Immediate support is at 22,640 levels, said Nagaraj Shetti of HDFC Securities.
Open Interest (OI) data showed that on the call side, the highest OI was observed at 24,000 and 24,200 strike prices. On the put side, the highest OI was at the 23,000 strike price.
What should traders do? Here’s what analysts said:
Shrikant Chouhan, Kotak Securities
We are of the view that the current market texture is non-directional. Perhaps, traders are waiting for either-side breakout. On the higher side, 23,650/77,700 would be the immediate breakout level while below 23,450/77,100 the selling pressure is likely to accelerate. Above 23,650/77,700, the market could move up till 23,750-23,800 /78,000-78,200. However, below 23,450/77,100, the market is likely to retest the level of 23,320-23,300/76,800-76,700.
Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities
The market consolidated within a range, with the index stuck between 23,400 and 23,650. The undertone remains bullish as long as the index sustains above the 23,400 support, where aggressive put writing is visible. Surpassing the 23,650 mark will open further room towards the 23,800/24,000 levels.
Tejas Shah, JM Financial & BlinkX
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 and the next resistance zone is at 23,750-800 levels.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
