Currently, Nifty needs to continue to rise above the 24,700 zone and extend its move towards the 25,000 and 25,100 zones, while support lies at 24,700 and 24,550 zones, said Chandan Taparia of Motilal Oswal.
“Volatility has declined along with a sharp rise in the put-call ratio, which indicates that the overall bullish trend in the market is likely to continue. The VIX has recently fallen from the 23 zone to the 13 zone and the decline in volatility also suggests a bullish stance in the overall market,” he said.
The RSI is trending up near the 60.46 level, further indicating bullish momentum in the market.
What should traders do? Here’s what analysts say:
Tejas Shah, JM Financial & BlinkXThe short-term moving averages are just below the price movement and should continue to support the index on any dip. Support for the index currently lies at the 24,775 level and 24,600-650 levels. On the upside, the immediate resistance for Nifty is at the 24,850 level and the next resistance is at the 25,000 level.
Hrishikesh Yedve, Vice President, Technical and Derivatives Research, Ashit C. Mehta Investment Intermediates
Technically, the index entered the gap zone of 24,852-24,956 but faced profit booking and formed a red candlestick on the daily chart. To trigger a new bullish surge, the index needs to cross the hurdle of 24,950-24,960 zone. On the downside, the 21-day Exponential Moving Average (DEMA) near 24,480 will act as a strong support. As long as the index remains above this level, a “buy low” strategy should be adopted.
Rupak De, LKP Securities
On the daily chart, Nifty continues to rise towards the upper Bollinger bands. Moreover, the index is also trading above the important short-term moving averages.
As long as it remains above 24,650, bulls are likely to remain in favor. Meanwhile, the current rally could extend towards 25,000 in the short term.
(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)
