Nifty is currently placed at the crucial cluster support around 25,000 levels (ascending trend line and 10-day EMA). The bullish pattern like higher highs and higher lows is visible on the daily chart, Nagaraj Shetti of HDFC Securities said.
“The near-term uptrend status remains intact for Nifty and any consolidations and minor dip down to 25K mark is expected to be a buying opportunity. One may expect Nifty to surge towards the new all-time highs soon around 25,350-25,400,” he said.
Open Interest (OI) data revealed the highest OI on the call side at 25,300 and 25,500 strike prices, while on the put side, it was concentrated at 25,000 strike price.
What should traders do? Here’s what analysts said:
Tejas Shah, Technical Research, JM Financial & BlinkXThe positive key takeaway is that Nifty is still holding above the psychological support level of 25,000 on a closing basis. The short-term moving averages are also below the price action and should continue to support the indices on any decline. On the downside, 25,175-200/25,078/ 24,950-25,000 are three important supports and these levels can be used as a strict trailing stop for existing longs. On the higher side, immediate resistance for Nifty is at 25,300-325 levels and the next crucial resistance zone is at 25,450-500 levels. Overall, bulls should continue to have the upper hand going forward.
Shrikant Chouhan, Kotak Securities
For day traders now, 25,100/82,000 would be the important support zone. As long as it is trading above the same, the pullback formation is likely to continue. On the higher side, immediate resistance would be 25,300-25,350/82,500-82,800. However, a dismissal of 25,100/82,000 could accelerate the selling pressure. Below 25,100/82,000, the market could retest the level of 25,000-24,470/81,700-81,550.
Hrishikesh Yedve, Asit C. Mehta Investment Interrmediates
Technically, the daily chart depicts a bullish Belt-hold candle at the breakout point of a rounded bottom pattern, indicating strength. On the downside, the 9-Day Exponential Moving Average (DEMA) is positioned near 25,090. As long as the index holds above the 25,000-25,100 levels, a “buy on dips” strategy should be employed. On the upside, the index may test the 25,500-25,600 levels in the near future.
Jatin Gedia, Sharekhan
On the daily charts, we can observe that Nifty has retested the breakout above 25,078 which was the previous swing high. There can be some consolidation over the next few trading sessions however the uptrend is still intact. A crucial support zone on the downside is placed at 24,900 – 24,850 and until this zone is not breached on the downside, we expect Nifty to target levels of 25500 from a short-term perspective.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
