Positive chart patterns like higher tops and bottoms are intact as per the daily chart, and the present upmove is in line with the new higher top formation of the pattern. The short-term uptrend of the Nifty remains intact, and the next upside levels are around 22,800 (1.618% Fibonacci projection). Immediate support is at 22,520 levels, said Nagaraj Shetti of HDFC Securities.
Analysis of the Open Interest (OI) data reveals the highest OI on the call side at the 23,000 strike price, followed by the 23,200 strike price. On the put side, the highest OI was observed at the 22,500 strike price.
What should traders do? Here’s what analysts said:
Rupak De, LKP Securities
Nifty has reached near the upper band of the rising wedge, which might act as resistance in the short term. Over the short term, the index might consolidate within a range. On the lower end, support is at 22,500, below which the index might fall back into consolidation.
Jatin Gedia, Sharekhan
Nifty has closed above the previous swing high of 22,619, which is a bullish sign. The daily and hourly momentum indicator has a positive crossover, a buy signal. The daily Bollinger bands are expanding, indicating range expansion, and with prices moving along the upper band suggests that there could be trending moves in the coming trading sessions. On the upside, the immediate hurdle is placed at 22,740, and beyond that, it is likely to stretch towards 23000. On the downside, support is placed at 22460 – 22420.(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
