However, there is a possibility of a minor pull-back rally or sideways consolidation in the next 1 or 2 days after a sharp fall, which was witnessed in Friday’s trading session.
Support for Nifty is now seen at 24,100 and 24,000. On the higher side, immediate resistance is at 24,450-500 levels and the next crucial resistance is at 24,700-750 levels, said Tejas Shah, Technical Research Analyst at JM Financial & BlinkX.
In the open interest (OI) data, the highest OI on the call side was observed at 24,400 and 24,300 strike prices, while on the put side, the highest OI was at 24,200 strike price followed by 245,100.
What should traders do? Here’s what analysts said:
Jatin Gedia, Sharekhan
On the daily charts, we can observe that the Nift has resumed its fall. It has reached 24,000 – 24,050, which coincides with psychological support as well as the daily lower Bollinger band, which shall restrict a sharp decline from hereon. The trend remains negative, however, there can be a pullback towards 24,350 and key hourly moving averages, which should be used as a selling opportunity. On the downside, 24,000 is likely from short-term perspective.
Rupak De, LKP Securities
The Nifty slipped below recent consolidation as the lack of follow-up buying attracted selling pressure in the market, decisively falling below 24,350. The sentiment appears extremely weak, with pullbacks likely to be sold into. Any rise toward 24,300-24,400 may be used to reduce long positions. Near-term support is placed at 24,000; a break below this level could lead the index into a downtrend.
Praveen Dwarakanath, Hedged.in
Nifty made a low at its support of 24,100 levels and bounced during the last session of the day. The momentum indicators on the weekly chart continue to show weakness in the index. On a daily chart, Nifty formed a bearish candle with a big wick on the downside, indicating strong buying, which came nearing the closing session. Any bounce in the index can be used as an opportunity to sell with a target of 23,700 levels, which is the next support below 24,000 levels. Options writer’s data for the monthly expiry showed increased writing of calls at 24,000 and above levels and ITM puts saw shortcovering, indicating a weakness in the index.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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