The underlying trend of Nifty continues to be positive. A sustainable move above the 24000-24100 level may take Nifty towards another Fibonacci extension resistance around 24380-24400 levels in the near term. Nagaraj Shetti of HDFC Securities said immediate support lies at 23800 level.
According to open interest (OI) data, the highest OI on the call side was observed at strike prices of 24,500 and 25,000. For put positions, the strike price of 23,800 recorded the highest OI.
What should traders do? Analysts said:
Rupak De, LKP Securities
Nifty continued to rise as bulls took the index to new all-time highs. This index has shown resilience despite the global slump, breaking all-time highs three times in a row. The trend will remain positive in the near term or until a drop below 23,800. At higher levels, the index may move towards 24,200.
Tejas Shah, JM Financial & BlinkX
Some technical indicators are in overbought territory on short-term charts, i.e. hourly charts, which can sometimes lead to a knee-jerk reaction. Short-term moving averages are below price action and should continue to support the index on a decline. Support for Nifty is now seen at 24,000 and 23,750-800 levels. On the higher side, Nifty’s immediate resistance is 24,125 level and next resistance is 24,300 level. Overall, Nifty is likely to remain volatile within the 23,800-24,300 range in the near term with a positive bias.
Jatin Gedia – Sharekhan Technology Research Analyst at BNP Paribas
Looking at the daily chart, we can see that Nifty has been witnessing a vertical rally in the last four trading sessions. Today, the IT index was one of the major factors that helped Nifty close above 24,000. The immediate upside gate is 24,150 – 24,200. The trailing stop loss for the buy should remain at 23,800. The difference is noticeable on the hourly chart and caution is warranted as the market breadth has worsened since the last three trading sessions.(Disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own. They do not represent the views of The Economic Times.)
