The underlying trend of Nifty remains positive. A sustainable move above 24,700 level could open up the next upside target of 25,000-25,100 in the near term. The immediate support is at 24,500 levels, said Nagaraj Shetti of HDFC Securities.
Open interest (OI) data showed the highest OI on the buy side at strike prices of 24,900 and 25,000, while on the sell side, it was concentrated at the strike price of 24,500.
What should traders do? Here’s what analysts had to say:
Tejas Shah, JM Financial and BlinkX
The technical structure of Nifty is relatively stronger than that of Bank Nifty. We believe that as long as Nifty sustains above 24,400, the rally is likely to continue and may test the next resistance of 24,850 on the upside. Support for the index is now seen at 24,600 and 24,350-24,400 levels. On the upside, the immediate resistance for Nifty is at 24,850 level and the next resistance is at 25,000.
Rupak De, LKP Securities
The trend is likely to remain strong as long as it stays above the 24,600-24,650 range. A decisive drop below 24,600 could trigger a reversal of the current uptrend. On the upside, the Nifty could move towards 24,840-24,860.Hrishikesh Yedve, Asit C. Mehta Investment Intermediates
Nifty filled the first gap hurdle and formed a bullish candle on the daily scale, which indicates strength. On the downside, the 21-day exponential moving average (DEMA), located near 24,410, will serve as a strong support in the near term. As long as the index remains above 24,400, the bullish momentum is expected to persist. On the upside, the next gap hurdle is located near 24,960, which will act as the first resistance for the index, followed by the previous all-time high around 25,080.(Disclaimer: The recommendations, suggestions, views and opinions of the experts are their own and do not represent the views of The Economic Times)
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