The short-term trend of Nifty continues to be positive amid high volatility. It recently surpassed the 22,250 level (the middle of Tuesday’s trading candle) and may rise to the next upper limit of 23,200 (the top of the trading candle) in the short term. Nagaraj Shetti of HDFC Securities said the immediate support level is at 22,640 level.
According to Open Interest (OI) data, the highest OI was observed on the call side at strike prices of 24,000 and 24,200. For put positions, the strike price of 23,000 recorded the highest OI.
What should traders do? Analysts said:
Shrikant Chouhan, Kotak Securities
We believe that the current market structure is directionless. Perhaps traders are waiting for a breakout from either side. On the higher side, 23,650/77,700 would be an immediate breakout level, while selling pressure is likely to accelerate below 23,450/77,100. Above 23,650/77,700, the market may rise to 23,750-23,800/78,000-78,200. However, below 23,450/77,100, the market is likely to retest the 23,320-23,300/76,800-76,700 levels.
Kunal Shah, Senior Technical and Derivatives Analyst, LKP Securities
The market was consolidated in a range with the index hovering between 23,400 and 23,650. The mood on the underside remains bullish as long as the index stays above the 23,400 support level where aggressive put positions are seen. Exceeding 23,650 opens additional space towards the 23,800/24,000 levels.
Tejas Shah, JM Financial & BlinkX
Support for Nifty is now seen at 23,500 and 23,300-350 levels. On the higher side, the immediate resistance zone is 23,600-625 level and the next resistance zone is 23,750-800 level.(Disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own. They do not represent the views of The Economic Times.)
