The negative pattern like lower tops and bottoms is still intact in Nifty charts and further upside bounce with a lack of strength could probably confirm the lower top reversal at the highs.
What should traders do? Here’s what analysts said:
Jatin Gedia, Mirae Asset Sharekhan
Rupak De, LKP Securities
Devarsh Vakil, HDFC Securities
The short-term trend of Nifty is positive but the market is lacking the strength to witness sharp upside breakouts of the hurdle. A sustainable move above 23,400-23,450 levels could possibly bring more short covering and push Nifty towards 23700. Immediate support is placed at 23150, said Nagaraj Shetti of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 23,500 and 23,400 strike prices, while on the put side, the highest OI was at 23,200 strike price followed by 23,300.
What should traders do? Here’s what analysts said:
Jatin Gedia, Mirae Asset Sharekhan
Nifty opened gap-up and again consolidated during the day to close in the green up 99 points. The Nifty has been in a counter-trend pullback mode after a sharp decline. The range of the previous three trading sessions has broken out on the upside indicating that the bounce is likely to continue towards 23,500 – 25,630. Hourly momentum indicator has a positive crossover which is a buy signal and suggests that the counter trend pullback can continue. On the downside the crucial support zone stands at 23160 – 23,140.
Rupak De, LKP Securities
The Nifty started higher and reached nearly 23,400 before closing near 23300. The near-term sentiment might remain volatile. On the upside, 23,400, might continue to remain as crucial resistance and only a decisive move above 23,400 may lead to higher levels. While support is seen at 23,150/23,000.
Devarsh Vakil, HDFC Securities
The Nifty continued its upward momentum today, adding 37 points (0.16%) to close at 23,213. Despite high volatility over the past two trading sessions, the Nifty has maintained to sustain above 23200. The index encountered resistance today at its 5-day exponential moving average near the 23,300 level. Looking ahead, key resistance levels for the Nifty are positioned at 23,340 and 23,500. On the downside, 23,047 continues to serve as a crucial short-term support level, below which the bearish trend could resume.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)