If the index holds at 23,460, it could see a pullback towards 23,800-23,900 in the short term. On the upside, the index will see resistance near the 23,930 mark, where the 200-DSMA is located. Hrishikesh Yedve of Asit C. Mehta Investment Intermediates said that if the level remains below $23,460, it could trigger weakness towards the $23,300-$23,200 level. He said that there is a sex.
According to the open interest (OI) data, the highest OI on the call side was observed at strike prices of 23,550 and 23,600, while on the put side, the highest OI was at strike price of 23,500, followed by 23,550.
What should traders do? Analysts say:
Jatin Gedia, Mirae Asset Sharekhan In the daily chart, we can see that the Nifty is trading on trendline support obtained by combining several previous swing lows. The zone between 23,550 and 23,500 acts as the make-or-break zone for Nifty. A break below this could result in a fall towards 23,263 (November 2024 low) and below that a fall towards the psychological level of 23,000. On the upside, the key hourly moving average at 23,631-23,702 will act as an immediate hurdle.
Vatsal Bhuva, LKP Securities
The Nifty index on Thursday ended just above the key support of 23,500, forming a bearish candlestick below the 200-day EMA, showing caution. If the price subsequently falls below 23,500, the sell-up strategy will be effective and further decline is expected. Conversely, holding this support could lead to consolidation. In the short term, 23,500 acts as a major support, while resistance is placed at 23,800, capping the upside. Traders should closely monitor these levels as they determine the immediate directional trend of the index.
Hardik Matalia, Selective Brokerage
On the daily chart, the Nifty index has formed a strong bearish candlestick, showing significant selling pressure from the higher levels after opening sideways. This pattern suggests that bearish momentum could continue, especially if a major support level is broken. The index was unable to maintain its high level and closed at around 23,500 points, showing a sense of caution. A break below this support could increase selling pressure and push the index into the 23,200-23,000 range. On the upside, we see some immediate resistance at 23,700, followed by a significant hurdle near 23,850. A sustained close above these resistance levels would be required to counteract the prevailing bearish sentiment and confirm a bullish reversal.
Praveen Dwarakanath, Hedged.in
Nifty tested the key support once again on Thursday at the 23,500 level and the support is likely to weaken and break within the next few days. The momentum indicators on the daily chart also show that the upward momentum is fading, suggesting a continued decline. The index has formed an insider candlestick, indicating that there is no clear sign until the 23,500 support is broken. January monthly expiration data from options writers shows increased call writing above the 23,400 level and increased put writing at the 23,500 level, indicating support at the 23,500 level.
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