Market participants would benefit by indulging in a buy-on-dips strategy as long as Nifty 50 is above the 24,000 mark, according to Rupak De, senior technical analyst at LKP Securities. However, he advised reviewing this strategy if the index drops below 24,000.
For traders, 24,000 and 78,800 would act as a sacrosanct support level for Nifty and Senex, respectively, said Shrikant Chouhan, head equity research at Kotak Securities. “On the higher side, the Nifty could move up to 24,400-24,500 and the Sensex to 80,000-80,300, while on the flip side, below 24,000/78,800, traders may prefer to exit long positions,” he said.
Nifty 50 has formed a piercing candlestick pattern along with a positive divergence in the relative strength index and 150DMA support, according to Aditya Gaggar, director of Progressive Shares.
“As indicated yesterday also, a level of 23,800 will serve as immediate support for Nifty while on the higher side, and the resistance level is shifted higher to 24,370,” he said.
