The Nifty formed a long bull candle, which indicates a decisive upside breakout of the range movement witnessed in the last 4-5 sessions. The Nifty has broken above the range as well as the trend line resistance around 25,500 levels.
A long bull candle was formed on the daily chart. The short-term trend of Nifty is sharply positive. Having surged up in one session on Friday, there is a possibility of consolidation/breather pattern in the short term, before moving up further. Next upside targets as per Fibonacci extension to be watched around 26,250. Immediate support is at 25,650, said Nagaraj Shetti of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 25,800 and 26,000 strike prices, while on the put side, the highest OI was at 25,700 strike price followed by 25,600 and 25,800.
What should traders do? Here’s what analysts said:
Jatin Gedia, Sharekhan
On the daily charts we can observe that the Nifty has been consolidating around the 24,200 – 24,150 range where the 40-day average is placed. The structure is still weak and momentum indicators also having a negative crossover, which is also supporting our bearish stance. Incase of a spike towards the key moving averages 24,250 – 24,300, it should be used as a selling opportunity for targets of 23,890 – 23,600. On the upside, 24,300 is the immediate hurdle from a short term perspective.
Tejas Shah, JM Financial & BlinkX
The Nifty index also closed above the crucial resistance zone of 25,500-550 this week and we expect an upwards trending activity to continue. The Nifty should move towards the next psychological resistance of 26,000 either continuously from the current levels or may be after a minor dip. Support for Nifty is now seen at 25,700 and 25,500-550. On the higher side, the next psychological resistance is at 26,000 mark. Overall, more follow-up strength can be expected based on Friday’s trading session.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)