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If Nifty remains below the 24,690 level, a further decline towards the 24,500-24,400 level could be likely. On the upside, immediate resistance is at the psychological level of 25,000, followed by the 21-day exponential moving average (21-DEMA) at 25,185, said Hrishikesh Yedve of Asit C. Mehta Investment Intermediates.
In the open interest (OI) data, the highest OI on the call side was observed at 24,750 and 254,800 strike prices, while on the put side the highest OI was at 24,750 strike prices, followed by 24,700.
What should traders do? Here’s what analysts said:
Praveen Dwarakanath, Hedged.inNifty has broken its consolidation range and almost closed its critical support at 24,700 levels. A close below 24,700 can open space for the 24,000 level. Although the ADX DI line is sloping upwards, the ADX average line is sloping downwards and the RSI on the daily chart is in oversold territory. This indicates a stop in the fall or a small dead cat stunt in the index compared to the current index. support at 24,700 levels.
Option writers’ data for this month’s expiration showed more call writing above the 24,800 levels and shorting of 25,000 puts, indicating weakness in the index.
Rupak De, LKP Securities
The Nifty has found initial support in the 24,700-24,750 zone. On the daily chart, the Nifty has emerged from a bearish flag pattern, indicating a possible downside move in the near term. The RSI shows a bearish crossover and is falling. However, this may not be the ideal level to initiate short positions as the index has undergone a steep correction and is close to reaching double bottom support, which could trigger a near-term recovery towards 25,000. Conversely, a decisive drop below 24,700 could lead to a significant market correction.
Tejas Shah, JM Financial & BlinkX
Technically, the Nifty Index consolidated only within a narrow range between 25,250 and 24,950 in the past few days and gave a mini breakdown during Thursday’s trading session as it closed below the 24,950 level. Support for Nifty is now seen at 24,700-750 and 24,500. On the higher side, the immediate psychological resistance for Nifty is at 25,000 points and the next crucial resistance zone is at 25,250-300 levels. Overall, the bears should continue to have the upper hand going forward.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of Economic Times)