The short-term uptrend status of the market remains intact and positive chart patterns like higher tops and bottoms are also valid. Nifty on the weekly chart sustained above the 10-week EMA and a bullish candlestick pattern was formed in the last few weeks, said Nagaraj Shetti of HDFC Securities.
OI data showed on the Call side, the highest OI was observed at 19,800 followed by 20,000 strike prices while on the put side, the highest OI was at 19,700 strike price.
What should traders do? Here’s what analysts said:
Jatin Gedia, Sharekhan by BNP Paribas
The daily and hourly momentum indicators provide divergent signals and in such a scenario a consolidation appears with high probability. Contraction of the Bollinger bands also supports our sideways outlook on the Index. The range of consolidation is likely to be 19,500 – 20,100 from a short-term perspective.
Shrikant Chouhan, Head of Research (Retail), Kotak Securities
For bulls, 19,800 would be the immediate breakout level, above the same the index could rally to 19,850-19,880. On the flip side, below 19,700, the selling pressure is likely to accelerate and could retest the level of 19,640-19,620.
Rupak De, LKP Securities
Over the near term, the index may experience volatility, with support placed at 19,700. A drop below 19,700 may take the index toward the range of 19,600-19,550. However, the “buy on dips” strategy is expected to remain the preferred approach as long as it sustains above 19,550.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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