Nifty, as per long-term charts (like weekly), is in an uptrend and further consolidation from here could offer a buy-on-dip opportunity. Immediate support is to be watched at 24,550 and the overhead resistance is placed at 24,800, said Nagaraj Shetti of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 24,700 and 24,800 strike prices, while on the put side, the highest OI was at 24,500 strike price followed by 24,600.
What should traders do? Here’s what analysts said:
Jatin Gedia, SharekhanOn the daily charts, we can observe that after the sharp up move in the previous session the Nifty consolidated within a narrow range. We believe that this is a brief pause in the overall uptrend. On the upside, the short-term target is placed at 25,125 while crucial support is placed at 24,550 – 24,500. Dips towards the support zone should be considered as a buying opportunity.
Rupak De, LKP Securities
Nifty remained range-bound during the session, trading within the bands of 24,600 and 24,800. The sentiment remains positive for the short term as the index sustains above the critical moving average on the daily timeframe. On the higher end, the index may continue its upward movement towards 25,000 and beyond in the short term. On the lower end, crucial support is placed at 24,500.
Hrishikesh Yedve, Asit C. Mehta Investment Interrmediates
Technically, the index has formed a small red candle on the daily chart, indicating profit booking. However, the index maintains above the 100-Day Exponential Moving Average (100-DEMA) support, which is near 24,360. As long as the index holds above it, traders are advised to adopt a buy-on-dips strategy. On the higher side, 24,860 will act as an immediate hurdle for the index followed by 25,000 in the short term.
Praveen Dwarakanath, Hedged.in
Nifty continues to consolidate in the 24,200 – 24,800 level, a break of which can further decide the price action. Immediate resistance for the index is at the 25,200 level, and support is at the 24,200 level. The index has formed an insider candle, indicating a range-bound move in the coming days. However, the momentum indicators on the daily chart continue to slope upside, indicating bullishness in the index.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
