With today’s strong close, prices have now surpassed the previous swing high, confirming a “Saucer” formation and signaling the potential for further upside. Nifty has consistently maintained the 25,000 level, and as long as this support holds, a positive bias should be retained. However, a break below 25000 could lead to weakness towards 24850 or lower, Rajesh Bhosale, Equity Technical Analyst, Angel One, said.
Open Interest (OI) data showed 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:
Hrishikesh Yedve, Asit C. Mehta Investment Interrmediates
On the daily scale, the index has crossed the hurdle of its previous all-time high and experienced a breakout of a rounding bottom pattern, indicating strength. Based on this breakout, the index could advance towards the 25,500 levels in the short term. On the downside, the 9-Day Exponential Moving Average (DEMA), positioned near 24,890, will act as immediate support for the Nifty in the short term. As long as the index remains above 24,890, a ‘buy on dips’ strategy should be adopted.
Jatin Gedia, Technical Research Analyst at Sharekhan
On the daily chart, we can observe that Nifty has been inching higher on account of sector rotation. We expect the momentum to continue towards 25250. On the downside, the crucial support zone is placed at 25000 – 24970. Divergence among the daily and hourly time frame momentum indicators can lead to some more range-bound price action.
Rupak De, LKP Securities
Nifty moved up to achieve its highest-ever closing following a volatile session. Besides, the index has undergone a brief consolidation breakout. The RSI is in a bullish crossover, indicating strong price momentum. In the short term, the index might move towards 25,300, with support on the lower end placed at 25,000.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
