Amid the range movement, the short-term trend of Nifty remains weak. A decisive upside above 23,400 could spark renewed buying interest in the market. Nagaraj Shetty of HDFC Securities said immediate support is at $23,100.
According to the open interest (OI) data, the highest OI on the call side was observed at strike prices of 23,300 and 23,500, while on the put side, the highest OI was at strike price of 23,200, followed by 23,000.
What should traders do? Analysts say:
Jatin Gedia, Mirae Asset SharekhanNifty closed the gap and witnessed a choppy day of trading on Friday. There were wild swings in both directions during the day, and the team ended up in the red by 109 points. On the daily chart, the countertrend uptrend over the past three trading sessions disappeared at the 40-hour moving average (23,390 yen) and resumed its decline. On the downside, we expect Nifty to fall towards the psychological level of 23,000 and below which it may fall towards 22,670. If the selling pressure on the downside fails to sustain, it could lead to consolidation within the 23,100-23,300 range.
Rupak De, LKP Securities
Nifty was further under bearish pressure for the next session. Sentiment remains weak as the index encountered resistance at a key moving average. This bearish mood could persist in the short term or as long as the index remains below 23,400. On the downside, it could move towards 23,000. A decisive break below 23,000 could trigger a broader market correction. On the other hand, 23,400 is likely to remain a strong resistance level.
Devarsh Vakil, HDFC Securities
Despite suffering a significant rise in intraday volatility of over 200 points, the Nifty index found important support at 23,100 from which it made an impressive recovery of over 100 points. The index fell nearly 1% this week, but ended well above its weekly low. Nifty is facing immediate support at 23,100, a break above which could trigger further decline. On the upside, the index may encounter resistance at the 23,391 and 23,500 levels. (Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. They do not represent the views of Economic Times).
