OI data showed that on the call side, the highest OI was observed at 22,100 followed by 22,200 strike prices, while on the put side, the highest OI was at 22,000 strike price. On the other hand, Bank Nifty has support at 47,800-47,650, while resistance is placed at 48,500 and 48,650 levels.
What should traders do? Here’s what analysts said:
Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities
For a sustained upward movement towards 22,300 levels, the index needs to decisively break above the 22,150 mark. On the downside, the immediate support is located at 21,950, and a clear break below this level could trigger further corrections towards the 21,800 mark.
Jatin Gedia, Sharekhan
Considering the current price and momentum setup, we expect the Nifty to consolidate within the range of 21,900-22,200 from a short-term perspective. Stock-specific action and sector rotation are likely during this period of consolidation. Aggressive longs should be avoided and adherence to strict stop-loss levels for the long positions is advised.
Ajit Mishra, SVP – Technical Research, Religare Broking
Indications are in favor of further consolidation in the index and expect Nifty to hold the 21,750-21,900 zone. However, traders should maintain extra caution in stock selection now citing volatility due to earnings. Besides, the current positioning of the midcap and smallcap index does not reflect the correct picture of deterioration in the broader trend so plan trades accordingly.(You can now subscribe to our ETMarkets WhatsApp channel)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
