Positive chart patterns like higher tops and bottoms are intact as per the daily chart and currently, Nifty is moving towards the new higher top formation. Still, there is no confirmation of any higher top reversal at the highs. Having breached above the immediate resistance of 21,550-21,600 levels, there is a possibility of more upside in the short term. The next upside targets to be watched are around 22,000-22,200 levels in the next week. Immediate support is placed at 21,300 levels, Nagaraj Shetti of HDFC Securities said.
Open Interest (OI) data showed the highest OI on the call side was observed at 22,000, followed by 21,800 strike prices. On the put side, the highest OI was at 21,500 strike price.
What should traders do? Here’s what analysts said:
Rajesh Bhosale, Technical Analyst, Angel OneThanks to last week’s dip and the current prices crossing recent highs, a saucer formation is now evident on the hourly chart. According to this pattern, prices may continue the upward movement in the near term towards the 22,000 mark, with 21,800-21,850 serving as immediate resistance. On the downside, bulls remain resilient, quickly buying any minor dips. Looking ahead, the bullish gap left on Wednesday around 21,500-21,480 is likely to act as strong support, before that the previous resistance around 21,600, which will serve as immediate support.
The upcoming session is a monthly expiry and holds significant importance from the calendar year-end point. Expect potential price settlements and increased volatility. Traders can view this as an opportunity and explore trending trading opportunities.
Rupak De, Senior Technical Analyst at LKP SecuritiesNifty experienced a significant rally as Put writers amassed substantial positions at 21,500. Additionally, the daily chart showcased a breakout from consolidation. The Relative Strength Index (RSI) indicates a bullish crossover, coinciding with the index positioned above a crucial moving average. Looking ahead, the index potentially aims for a range between 21,750-21,800 on the upside, with support resting at 21,500.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
