The Nifty50 index touched the 25,446 mark before closing at 25,384, up by 28 points or 0.11%. Meanwhile, the 30-stock S&P BSE Sensex reached a record high of 83,184.34 and ended the session at 82,989, gaining 98 points or 0.12%.
A small negative candle was formed on the daily chart which is a back-to-back similar pattern in the last two sessions. Technically such range movements post sharp up moves could eventually result in an uptrend continuation pattern, said Nagaraj Shetti of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 25,400 and 25,500 strike prices, while on the put side, the highest OI was at 25,300 strike price followed by 25,400.
What should traders do? Here’s what analysts said:
Jatin Gedia, SharekhanThe consolidation is likely to continue for a couple of trading sessions. Stock-specific action is likely to continue during this phase. The undertone is bullish, and it is likely to resume its upmove once the consolidation phase is complete. The upside is likely towards 25,500 – 25,700. Support is placed in the zone of 25,200 – 25,150.
Hrishikesh Yedve, Asit C Mehta Investment Interrmediates
Technically, the small red candle formation on the daily chart signals some short-term hesitation, but the fact that Nifty remained above the 25,335 (breakout level of the rounding bottom pattern) suggests underlying strength. The 21-DEMA support is currently placed near 25,020. As long as Nifty stays above 25,000, a “buy on dips” strategy is advisable, with the potential for the index to test 25,600 in the short term.
Tejas Shah, JM Financial & BlinkX
The rally is likely to continue and Nifty can test the next resistance zone of 25,500-550 in the next couple of days. The short-term moving averages are below the price action and should continue to support the indices on any / every decline. Support for Nifty is now seen at 25,300 and 25,150-200. On the higher side, immediate resistance for Nifty is at the 25,400 mark and the next resistance zone is at 25,500-550 levels. Overall, Nifty is likely to remain volatile within the 25,200–25,550 range in the near term with a positive bias.
Rupak De, LKP Securities
The technical chart (of Nifty) shows no change in formation compared to the previous day. The trend continues to be strong, though with limited upward potential in the short term. Key support levels are still intact between 25,150-25,200, while resistance is positioned around 25,460-25,500. A decisive breakout from the current range might initiate a directional move.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
