In the open interest (OI) data, the highest OI on the call side was observed at 26,000 and 26,200 strike prices, while on the put side, the highest OI was at 25,900 strike price followed by 25,800.
What should traders do? Here’s what analysts said:
Rupak De, LKP Securities
The Nifty traded within a narrow range today, taking a breather after a three-day rally. The short-term sentiment remains positive, with the index staying above the critical 21-day EMA, supported by a bullish crossover in the daily RSI. However, for the rally to continue, the Nifty must decisively break above the 26,000 level. Until then, we expect range-bound movement, with the index fluctuating between 25,800 and 26,000 over the next few days.
Hrishikesh Yedve, Asit C Mehta Investment Interrmediates
Technically, the index is oscillating within a rising channel and is trading near the upper trend line resistance of the channel pattern, which is around the range of 25,900-26,000 levels, making them a strong hurdle in the short term. Therefore, on the upside, 26,000 will act as an immediate hurdle for Nifty. If the index sustains above 26,000 it could test the levels of 26,200. On the downside, 25,600 will serve as a strong support for the index.
Tejas Shah, JM Financial & BlinkX
Presently, Nifty is trading around the psychological resistance of 26,000 and there is possibility of profit booking from this resistance in next couple of days since some of the technical indicators are in overbought territory on the short term (Hourly) charts that could lead to knee-jerk reactions, from time to time. However, the broader set-up continues to be bullish and hence, post some consolidation / correction, we should see more upside. Support for Nifty is now seen at 25,850 and 25,650-700. On the higher side, immediate psychological resistance is at 26,000 mark.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
