“A long bull candle was formed on the daily chart which has broken above the crucial hurdle and also the range movement around 25,200 levels. Technically, this pattern signals a decisive upside breakout of the important resistance zone at 25,360 (1.382% Fibonacci extension). This is a positive indication,” said Nagaraj Shetti of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 25,400 and 25,500 strike prices, while on the put side, the highest OI was at 25,400 strike price followed by 25,300 and 25,350.
What should traders do? Here’s what analysts said:
Rupak De, LKP SecuritiesThe Nifty has broken out of its recent consolidation on the daily chart, indicating a rise in optimism. Additionally, the index has been sustaining above the critical 21-day EMA, a near-term moving average. The RSI on the daily chart shows a bullish crossover, reinforcing the positive sentiment. The trend is expected to remain strong, as the index closed above the recent consolidation high. On the upside, the rally could potentially continue toward the 25,470–25,500 range, while support is seen at 25,100
Prashanth Tapse, Mehta Equities
Technically, Nifty closing above 25,200 is a good sign, and the next resistance is above 25,580. And, by September-end, there is a high possibility that Nifty can touch and trade in the range of 25,600-25,700 levels.
Jatin Gedia, Sharekhan
On the daily charts, we can observe that the Nifty has broken out of a sideways consolidation on the upside. The next leg of the up move towards 25,500 – 25,700 has begun. Support base shifts higher towards 25,100 from a short-term perspective.
Tejas Shah, JM Financial & BlinkX
The rally is likely to continue and the Nifty can test the next resistance zone of 25,500-550 in the next couple of days. Support for Nifty is now seen at 25,150-200 and 24,950-25,050. On the higher side, immediate resistance for Nifty is at 25,400 Mark and the next resistance zone is at 25,500-550 levels.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)