Nifty formed a high-wave type candlestick on October 28 after a decline that signaled the beginning of an upward correction. Nifty may now face resistance at 24,567, while the 24,073-24,135 band could provide support in the short term. Deepak Jasani of HDFC Securities said sustaining this rally in the coming days will be crucial to regain buying interest from investors from all walks of life.
In the open interest (OI) data, the highest OI on the call side was observed at strike prices of 24,500 and 24,400, while on the put side, the highest OI was at strike price of 24,200, followed by 24,300.
What should traders do? Analysts say:
Jatin Gedia, Sharekhan daily chart shows that Nifty is finding buying interest from the support zone of 24000-24090 which is located at the lower limit of the daily Bollinger band. Hourly momentum indicators are causing a positive crossover, and the countertrend rebound rally that started today could continue over the next few trading sessions to 24,900-24,930, where the key daily moving averages are located. Highly sexual.
Praveen Dwarakanath, Hedged.in
Nifty bounced a dead cat from the 24100 level support. The index’s immediate resistance lies at the 24,500 level, above which it could move closer to the 24,800 level. However, on the weekly chart, momentum indicators continue to show weakness in the index. Today’s pullback in the index can be used as an opportunity to sell targeting the next support below the 24100 level, the 23700 level. Option Writer’s monthly expiry data shows an increase in call writing above the 24500 level, pointing to resistance at the 24500 level in the index.
Tejas Shah, JM Financial, BlinkX
As long as Nifty remains above 24K, the current rebound rally that started recently is likely to continue. Any pullback rally towards 24,500/24,750 is likely to see selling pressure. Support for Nifty is currently seen at 24,200 and 24,000. On the upside, Nifty’s immediate resistance zone lies at 24,450-500 levels and the next important resistance zone lies at 24,700-750 levels.(Disclaimer: Recommendations, suggestions, views and opinions by experts are their own. They do not represent the views of Economic Times)
