The short-term trend of Nifty continues to be range- bound. There is a possibility of some more consolidation or minor weakness in the short term before showing upside bounce from the lows. Immediate support is placed around 19600-19550 levels, said Nagaraj Shetti of HDFC Securities.
Open Interest (OI) data shows that on the call side highest OI was at 19,800, followed by 19,900 strike prices. On the put side, the highest OI was recorded at 19,600 strike price.
What should traders do? Here’s what analysts said:
Jatin Gedia, Sharekhan
On the daily charts, we can observe that for the last three trading sessions, Nifty is trading within a range of 19875 – 19627. On the downside, Nifty is approaching the crucial support zone of 19650 – 19600 where multiple support parameters in the form of the 40-hour moving average and the lower end of the rising channel are placed. We expect Nifty to hold on to this support. The hourly momentum indicator has a negative crossover and has reached the equilibrium line indicating that the correction has matured and can start a new cycle on the upside. In terms of levels, 19610 – 19650 is the crucial support zone while 19900 – 19930 is the immediate resistance zone.
Rupak De, LKP Securities
Nifty is currently trading within a broad consolidation phase, forming an inside bar candle pattern, with support observed at 19,650 and resistance at 19,800. For a decisive trending move, the index needs to break out of this range with significant volumes on either side. Despite the consolidation, the broader picture remains bullish, with major support identified in the 19,550-19,500 zone. A break above 19,850 is anticipated to open up room for the index to reach all-time high levels.
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(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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