The short-term trend of Nifty continues to be choppy. The next lower supports to be watched are around 23,800 levels. Immediate resistance is placed at 24,250 levels, said Nagaraj Shetti of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 24,200 and 24,300 strike prices, while on the put side, the highest OI was at 24,000 strike price followed by 24,100.
What should traders do? Here’s what analysts said:
Jatin Gedia, SharekhanOn the daily chart, we can observe that the Nifty is in the process of retracing the rise it witness from 23,800 to 24,500. Currently, it is trading around the 61.82% Fibonacci retracement level (24,090), which is likely to provide support and holding. This can lead to a resumption of upmove. A break below 23,970 is likely to weaken the structure.
Hrishikesh Yedve, Asit C Mehta Investment Interrmediates
Technically, on a daily basis, the index formed a red candle, indicating weakness. Thus, on the higher side, the index’s initial hurdle will be around 24,500, followed by 24,700. However, the index continues to respect the 150-day exponential moving average (DEMA) support near 23,990, as well as recent swing support near 23,800. In the immediate term, we expect the index will consolidate in the range of 23,800 to 24,700. A decisive breakout on either side will determine the next direction of the index. Until then, traders should aim to buy near support and sell near resistance.
Rupak De, LKP Securities
The 24,000 level is expected to serve as strong support for the index. If it holds above this level, Nifty bulls may still have an opportunity to regain momentum. However, a break below 24,000 could further weaken the market. The RSI indicator remains in a positive crossover, indicating that short-term momentum is likely to stay strong. In the near term, the index may recover toward 24,500, but a dip below 24,000 could lead to a market correction.
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