The overall trend of Nifty remains positive as per smaller to larger time frame chart. Having placed at the hurdle of around 24400 levels (1.618% Fibonacci Extension), there is a possibility of this consolidation/minor dip extending for the coming sessions. Immediate support is at 10 day-EMA at 23,990, said Nagaraj Shetti of HDFC Securities.
Strong call writing was observed at 24,400 strike while strong put writing was observed at 24,300 strike in Nifty, which kept the index in a range throughout the day. The put writers have strengthened their position at 24,000 & 24,200 strike in Nifty.
What should traders do? Here’s what analysts said:
Kunal Shah, LKP Securities
On the expiry day, Nifty witnessed consolidation at higher levels but managed to trade above 24,200. The higher-end resistance is placed at 24500 where the highest open interest is built up on the call side. A break above this mark will likely see a fresh move on the upside. The lower-end support is at the 24200-24150 zone, and a decisive break below this level could lead to further selling pressure towards the 24000-23800 mark.
Shrikant Chouhan, Head Equity Research, Kotak Securities
After a promising uptrend rally currently, the market is witnessing non-directional activity at higher levels, perhaps traders are waiting for either side to breakout. For the day traders now, 24400/80390 would be the immediate breakout level. Above which, the market could rally up to 24500-24525/80700-80800. On the flip side, below 24280/80000 the sentiment could change. Below the same, the market could retest the level of 24200-24165/79700-79550.
Jatin Gedia, Sharekhan
On the daily charts, we can observe that Nifty has reached the zone of 24370 – 24500 which coincides with the 150% fibonacci retracement level of the previous fall and can act as a resistance from a short term perspective. Moreover, the negative divergence and bearish crossover on the hourly momentum indicator suggests loss of momentum on the upside. Thus, we can expect some consolidation going ahead. Aggressive longs should be avoided and a trailing stop loss of 24200 should be maintained for the long positions.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
