The underlying trend of Nifty remains sluggish. Nifty is trying to fall to the next lowest support around 22,800-22,700 levels. Nagaraj Shetty of HDFC Securities said a fall to $23,350 could be an opportunity to sell higher.
In the open interest (OI) data, the highest OI on the call side was observed at strike prices of 23,300 and 23,200, and the highest OI on the put side was at strike price 23,000.
What should traders do? Analysts say:
Jatin Gedia, Mirai Asset Sharekan
On the daily chart, we see that Nifty has broken below the November 2024 low of 23,263, suggesting weakness. The daily momentum indicator has a negative crossover that is a sell signal. We therefore intend to maintain our negative stance on the index, targeting 22,670, which is consistent with the 38.2% Fibonacci retracement level of the rally from the March 2023 low (16,828). On the upside, a swing low between 23,260 and 23,300 will serve as an immediate hurdle, following the principle of role reversal.
Rupak De, LKP Securities
The bears continued to take control as Nifty continued to break through important levels. The index fell below its previous swing low on the daily chart, indicating an increasing bearish trend. However, the 23,000 level has been maintained and remains an important level to watch. If Nifty remains above 23,000 in the coming days, it could signal a possible recovery. Conversely, a decisive decline below this level could trigger a deeper correction.
Satish Chandra Alluri, Lemon Market Desk
Technically, the Nifty 50 looks very weak with prospects for further decline, but the RSI indicates that the short-term situation looks oversold. 23,000 people are expected to provide primary psychological support, with secondary support expected to be around 22,800 people. Bank Nifty also fell sharply, with the RSI falling below 30, indicating that it is oversold in the short term.(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. They do not represent the views of Economic Times)
