The overall trend of Nifty remains positive. Further consolidation or minor dips from here could be a buying opportunity, as per the bullish pattern of higher tops and bottoms. Nifty as per long term chart remains strong and one may expect upside momentum to resume shortly after the consolidation movement. Immediate support is at 23,980. The next upside resistance to be watched is around 24,400, said Nagaraj Shetti of HDFC Securities.
Open Interest (OI) data showed that on the call side, the highest OI was observed at 24,500 and 24,600 strike price. On the put side, the highest OI was at 24,000 strike price.
What should traders do? Here’s what analysts said:
Rupak De, LKP Securities
Nifty faced profit booking around 24,200, leading to a close 100 points off the high. The sentiment is likely to favor selling on rallies until it moves above 24,250. On the lower end, 24,000 is likely to act as immediate support for the Nifty. A fall below 24,000 might trigger a correction towards 23,850/23,700.
Jatin Gedia, Sharekhan
Nifty has been unable to sustain at higher levels as the hourly momentum indicator is not supportive which is having a negative crossover. Thus there shall be some more consolidation before it starts a fresh leg of up move. The range of consolidation is likely to be 23,900 – 24,200. Ideal strategy to trade such a consolidation would be to buy on decline in the support zone 24,080 – 24,000.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
