A sustainable move above the upper range of 25,200 level could be considered as an upside breakout of the key hurdle and that could eventually pull Nifty towards the next resistance of 25,500-25,600 levels in the near term. Immediate support is placed at the 24,900 levels, said Nagaraj Shetti of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 25,200 and 25,300 strike prices, while on the put side, the highest OI was at 25,000 strike price followed by 25,100.
What should traders do? Here’s what analysts said:
Jatin Gedia, SharekhanOn the daily charts, we can observe that the Nifty has resumed its upmove towards 25,500 after a brief three-day consolidation. Hourly momentum indicator has a positive crossover, which is a buy signal. Thus, we expect the positive momentum to continue over the next few trading sessions towards 25,234 – 25,360. Support base shifts higher towards 24920.
Hrishikesh Yedve, Asit C Mehta Investment Interrmediates
Technically, on the daily chart, the index formed a green candle, signalling strength. On the upside, the 21-DEMA is placed near 25,270, which will act as a short-term hurdle for the index, followed by 25,400. On the downside, the index will find immediate support near 24,900. Thus, as long as the index holds above 24,900, a “buy on dips” strategy should be pursued.
Tejas Shah, JM Financial & BlinkX
The candlestick pattern formed on the daily chart is an encouraging one. On the higher side, the 25,250 – 25,300 zone remains important as a barrier and the market needs to cross this on a closing basis for any major strength in Nifty. Support for Nifty is now seen at 25,000 and 24,750-800. On the higher side, immediate resistance for Nifty is at 25,150 levels and the next crucial resistance zone is at 25,250-300 levels.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)