The underlying trend for Nifty remains positive. The upside hurdle near 24,400-24,500 levels is likely to be breached in the next few sessions. The immediate support is at 24,170 levels, said Nagaraj Shetty, Head of HDFC Securities.
What should traders do? Here’s what analysts say:
Rupak De, LKP Securities
The index opened with a gap down. But after the initial weakness, put writers came back in large volume. The 24,200 level saw heavy writing on the put side, which acted as short-term support for Nifty. The surge in the last hour in Nifty indicates the resilience of the bullish trend. This strength is likely to prevail in the market till a decisive drop below 24,200. A drop below 24,200 is likely to trigger profit taking in the market.
Om Mehra, Samco Securities
The surge in the last few hours indicates that bulls have successfully arrested the breakdown of the ascending trend line at the support of 24,200 on the hourly chart. The 23.6% Fib retracement level at 24,150 will act as immediate support. A breakout above the all-time high of 24,401 can push the index towards the 24,520-24,550 range.
Jatin Gedia, Sharekan
On the daily chart, we can see that Nifty is facing resistance in the 24,370-24,500 zone. Loss of momentum is evident on the hourly chart as a negative divergence develops, which happened on Friday. Bollinger bands on the hourly chart are suggesting contraction, hence range-bound price action is expected for the next few trading sessions. Going forward, Nifty is expected to trade in the range of 24,100-24,400.
(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. They do not necessarily represent the views of The Economic Times)
