Hence, a sustainable move above 19,900 levels could result in Nifty zooming towards new all-time highs in a quick period. Any dips from here could find support around 19,800-19,750 levels, said Nagaraj Shetti of HDFC Securities.
Open Interest (OI) data showed that the call side reflected the highest OI at 20,000 level, followed by the 20,100 strike prices. On the put side, the highest OI was observed at the 19,800 strike price.
What should traders do? Here’s what analysts said:
Jatin Gedia, Sharekhan
The broad range of 19,650 – 19,850 has been decisively broken on the upside, which puts the bulls in a position of strength. We expect the positive momentum to continue over the next few trading sessions and the next psychological level stands at 20,000 with a potential to stretch higher till 20,200. On the downside, 19,770 – 19,750 shall act as crucial support and should not be breached on the downside for the positive momentum to continue.
Rupak De, LKP Securities
Nifty has risen above the recent consolidation high, indicating increased optimism among market participants. Furthermore, it has held steady above the critical near-term support level of 19,700. The sentiment is expected to stay positive, potentially leading to a new lifetime high in the short term. At the lower end, 19,700 could remain a crucial short-term support level.
Ajit Mishra, SVP – Technical Research, Religare Broking
Nifty has finally surpassed the hurdle at 19,850 and now we expect the index to inch toward a new high. Needless to say, the quantum of rise would depend upon the performance of the banking, which has also reached closer to its immediate hurdle. We reiterate our view to continue with the “buy on dips” approach and prefer stocks with relatively higher strength for fresh buying.
(Subscribe to ETMarkets WhatsApp channel)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)