Nifty’s short-term trend is still positive, but the show of lack of strength in the current upward rebound is likely to result in further weakness near recent lows before another round of upward movement takes place. There should be immediate resistance at 25,250, says Nagaraj Shetti of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 25,100 and 25,000 strike prices, while on the put side the highest OI was at 25,000 strike prices, followed by 24,900.
What should traders do? Here’s what analysts said:
Jatin Gedia, Sharekhan
On the daily charts, we can see that Nifty is in a pullback mode after a correction of 1,500 points. we believe that the pullback is not complete and that there is room for further increase to 25,350 – 25,500. Therefore, the intraday corrections should be used as a buying opportunity. A stop loss of 24,800 must be maintained for long positions.Hrishikesh Yedve, Asit C Mehta investment intermediaries
Technically, the index on the daily chart formed a small red candle, followed by an insider bar candlestick, and it still remains above the short-term trendline support. As long as the index remains above the low of 24,690, levels of 25,150–25,350 could be possible. However, a close below 24,690 could lead to another slump.Rupak De, LKP Securities
The Nifty opened higher but struggled to sustain gains, leading to a weaker close. On the hourly chart, the index closed just above the 20DMA, indicating that the very short-term trend remains positive and is likely to remain so as long as it remains above 24,940. However, a drop below 24,940 could trigger a correction to 24,800/24,700. On the upside, 25,100 can act as resistance.
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