The underlying trend for Nifty remains positive. A sustained climb above the hurdle of 24,700 levels could see it reach the next upside target of 25,000-25,100 in the near term. Nagaraj Shetti of HDFC Securities said immediate support lies at the 24,500 level.
Open interest (OI) data shows that on the call side, OI was highest at the 24,900 and 25,000 strike prices, while on the put side, it was concentrated at the 24,500 strike price.
What should traders do? Here’s what analysts say:
Tejas Shah, JM Financial, BlinkX
The technical structure of Nifty is comparatively stronger than Bank Nifty. As long as Nifty remains above 24,400, the upside is likely to continue and it can test the next resistance at 24,850 at the higher zone. Support for the index is currently at 24,600 and 24,350-24,400 levels. At the higher zone, the immediate resistance for Nifty is at 24,850 level and the next resistance is at 25,000 level.
Rupak De, LKP Securities
As long as it remains above the range of 24,600-24,650, the trend is likely to remain strong. A drop below 24,600 could trigger a reversal of the current uptrend. On the upper end, Nifty could head towards 24,840-24,860. Hrishikesh Yedve, Asit C. Mehta Investment Interrmediates
Nifty has filled the first gap hurdle and formed a bullish candlestick on the daily scale, indicating strength. On the downside, the 21-day Exponential Moving Average (DEMA) near 24,410 is acting as a strong support in the short term. The bullish momentum is expected to continue as long as the index remains above 24,400. On the upside, the next gap hurdle is near 24,960, which will act as the first resistance for the index, followed by the all-time high near 25,080. (Disclaimer: Expert recommendations, suggestions, views and opinions expressed are their own and do not represent the views of The Economic Times)
