The short-term trend of Nifty seems to have turned down and the next lower levels to be watched are around 22100-22050 levels. Intraday resistance is at 22,525, said Nagaraj Shetti of HDFC Securities.
The Open Interest (OI) data showed the call side exhibited the highest OI at 22,500, followed by the 22,600 strike prices. In contrast, on the put side, the maximum OI was observed at the 22,000 strike price.
What should traders do? Here’s what analysts said:
Tejas Shah, JM Financial & BlinkX
Nifty has been facing a lot of resilience around 22,500-525 levels on an immediate basis for the past couple of days and there is clearly a tug-of-war between the bulls and the bears for this make-or-break resistance level. As long as Nifty is holding above 22,000, there is no major sense of panic as of now. Supports for Nifty are now seen at 22,250-300 and 22,000 levels. On the higher side, immediate resistance for Nifty is at 22,500-525 levels and the next resistance is at the 22,700 mark.
Jatin Gedia, Sharekhan
On the daily charts, we can observe that Nifty has not witnessed follow-through buying interest after a decisive breakout. It is witnessing selling pressure at higher levels. This could result in Nifty slipping back into the consolidation zone 22,100 – 22,600. The daily Bollinger bands are contracting indicating a range contraction and is likely to result in a range-bound price action going ahead. The expectation of trending moves on the upside is fading away in the absence of strength from the key heavyweights of the index. In terms of levels, 22,224 – 22,167 is the crucial support zone, while 22,530 – 22,600 is the immediate hurdle zone from a short-term perspective.
Rupak De, Senior Technical Analyst, LKP Securities
Nifty has been fluctuating within an ascending channel, displaying a pattern of higher highs and higher lows. The overall trend continues to be bullish, although there is currently an intermediate corrective phase in progress. In the short term, Nifty could experience weakness, possibly leading to a decline toward the range of 22,200-22,250. Looking at the upside, immediate resistance is identified at 22,400 based on closing prices.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)