“A long bullish candlestick has formed on the daily chart which has cleared the crucial hurdle and also the range-bound move around 25,200 levels. Technically, this pattern indicates a decisive bullish breakout of the important resistance zone at 25,360 (1.382% Fibonacci extension). This is a positive indication,” said Nagaraj Shetti of HDFC Securities.
In it open interest (OI) data, the highest OI on the buy side was seen at the strike prices of 25,400 and 25,500, while on the put side, the highest OI was 25,400 Strike price followed by 25,300 and 25,350.
What should traders do? Here’s what analysts had to say:
Rupak De, LKP SecuritiesThe Nifty has broken out of its recent consolidation on the daily chart, indicating increasing optimism. Moreover, the index The index has held above the critical 21-day EMA, a short-term moving average. The RSI on the daily chart is showing a bullish crossover, reinforcing the positive sentiment. The trend is expected to remain strong as the index closed above the recent consolidation high. On the upside, the rally could potentially continue towards the 25,470-25,500 range, while support is seen at 25,100.
Prashanth Tapse, Mehta shares
Technically, the Nifty closing above 25,200 is a good sign, and the next resistance is above 25,580. And, by the end of September, there is a strong possibility that the Nifty may touch and trade in the range of 25,600-25,700 levels.
Jatin Gedia, Sharekhan
On the daily charts, we can observe that the Nifty has broken out of a sideways consolidation to the upside. The next leg of the up move towards 25,500 – 25,700 has started. The support base is shifting to the upside towards 25,100 from a short-term perspective.
Tejas Shah, JM Financial and BlinkX
The rally is likely to continue and the Nifty may test the next resistance zone of 25,500-550 in the coming days. Support for the Nifty is now seen at 25,150-200 and 24,950-25,050. On the upside, the immediate resistance for the Nifty is at 25,400 Mark and the next resistance zone is at 25,500-550 levels.
(Disclaimer: The recommendations, suggestions, views and opinions of the experts are their own and do not represent the views of Economic Times)
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