A sustained move above the upper limit of the 25,200 level would be seen as an upward breach of a key hurdle and could eventually pull the Nifty towards the next resistance level of 25,500-25,600 in the near term. Nagaraj Shetty of HDFC Securities said immediate support lies at the 24,900 level.
In the open interest (OI) data, the highest OI on the call side was observed at strike prices of 25,200 and 25,300, while on the put side, the highest OI was at strike price of 25,000, followed by 25,100.
What should traders do? Analysts say:
Jatin Gedia, Sharekhan The daily chart shows that Nifty has resumed its rally towards 25,500 after a short three-day consolidation. The hourly momentum indicator has a positive crossover, which is a buy signal. Therefore, we expect the positive momentum to continue towards 25,234-25,360 in the next few trading sessions. The support base rises towards 24920.
Hrishikesh Yedve, Asit C Mehta Investment Intermediates
Technically, on the daily chart, the index formed a green candlestick, indicating strength. On the upside, the 21-DEMA is near 25,270, which acts as a short-term hurdle for the index, followed by 25,400. On the downside, the index will likely find near-term support near 24,900. Therefore, as long as the index remains above 24,900, you should pursue a “buy the push” strategy.
Tejas Shah, JM Financial, BlinkX
The candlestick pattern formed on the daily chart is encouraging. On the higher side, the 25,250-25,300 zone remains important as a barrier and the market needs to cross this on a closing basis to gain key strength for the Nifty. Support for Nifty is currently seen at 25,000 and 24,750-800. On the upside, Nifty’s immediate resistance is at the 25,150 level and the next important resistance zone is the 25,250-300 level.(Disclaimer: Recommendations, suggestions, views and opinions by experts are their own. They do not represent the views of Economic Times)
