The short-term trend of Nifty seems to have reversed up, but the uncertainty remains in the market at the highs. The market could encounter strong resistance around 21,500-21,600 levels in the coming session. Immediate support is at 21,220 level, said Nagaraj Shetti of HDFC Securities.
The hourly momentum indicator has triggered a positive crossover which is a buy signal.
OI data showed that on the call side, the highest OI was observed at 21,700 followed by 21,800 strike prices while on the put side, the highest OI was at 21,300 strike price.
What should traders do? Here’s what analysts said:
Rupak De, Senior Technical Analyst, LKP Securities
The Nifty exhibited volatility throughout the day following a weak start. On the hourly chart, the index began displaying initial signs of a reversal. However, it closed below the resistance level of 21,500. A decisive move above 21,500 could potentially trigger a significant rally in the index. On the downside, support is situated at 21,400-21,350. A confirmed breakthrough above 21,500 may propel the index towards 21,700 and beyond.
Jatin Gedia, Sharekhan
On the daily charts, we can observe that Nifty has held on the 40-day average, which was placed at 21,234. Going ahead, we expect Nifty to face resistance in the zone of 21,500 – 21,520 where the key hourly moving averages are placed. Traders should look for signs of weakness around the resistance zone before initiating shorts as there is a possibility of a deeper retracement till 21,780 – 21,800 where the hourly upper Bollinger band is placed. On the downside, 21,250 – 21,220 shall act as a crucial support zone from short-term perspective while 21,500 – 21,520 is the immediate hurdle zone from short-term perspective.
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