However, after the sharp decline seen in Friday’s trading, a small rebound or sideways consolidation could occur over the next day or two.
Support for Nifty is currently seen at 24,100 and 24,000. Tejas Shah, technical research analyst at JM Financial & Blink
In the open interest (OI) data, the highest OI on the call side was observed at strike prices of 24,400 and 24,300, while on the put side, the highest OI was at strike price of 24,200, followed by 245,100.
What should traders do? Analysts say:
Jatin Gedia, Sharekan
On the daily chart, we can see that Nift has resumed its decline. 24,000-24,050, which is consistent with psychological support and the lower bound of the daily Bollinger Bands that limits further sharp declines. Although the trend remains negative, a pullback towards 24,350 and the key hourly moving averages is possible and this should be used as a selling opportunity. On the downside, it is likely to reach 24,000 in the short term.
Rupak De, LKP Securities
Lack of follow-up buying led to selling pressure in the market and the Nifty fell below recent price movements and decisively fell below 24,350. Sentiment seems very weak and a sell-off is likely. The rally towards 24,300-24,400 could be used to reduce long positions. Near-term support is set at 24,000. Below this level, the index may enter a downtrend.
Praveen Dwarakanath, Hedged.in
Nifty hit a low at the support of 24,100 level and rebounded during the last session of the day. Momentum indicators on the weekly chart continue to show weakness in the index. On the daily chart, the Nifty has formed a bearish candlestick with a large core on the bottom, indicating strong buying as it approaches the close. The rebound in the index can be used as a selling opportunity targeting the next support below the 24,000 level at the 23,700 level. Monthly expiration data from options writers shows increased call writing above the 24,000 level and short covering of ITM puts, indicating weakness in the index.
(Disclaimer: Recommendations, suggestions, views and opinions by experts are their own. They do not represent the views of Economic Times)
