The underlying trend of Nifty continues to be weak. Nifty is on the way down to the next lower support of around 22,800-22,700 levels . Any pullback up to 23,350 could be a sell-on-rise opportunity, said Nagaraj Shetti of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 23,300 and 23,200 strike prices, while on the put side, the highest OI was at 23,000 strike price.
What should traders do? Here’s what analysts said:
Jatin Gedia, Mirae Asset Sharekhan
On the daily charts we can observe that the Nifty has broken below the Nov, 2024 low 23,263 suggesting weakness. The daily momentum indicator has a negative crossover which is a sell signal. Thus, we shall continue to maintain a negative stance on the index for a target of 22,670 which coincides with the 38.2% Fibonacci retracement level of the rally from March, 2023 low (16,828). On the upside the swing low of 23,260 – 23,300 shall act as an immediate hurdle as per the principle of role reversal.
Rupak De, LKP Securities
Bears remained at the helm as the Nifty continued to breach crucial levels. The index slipped below its previous swing low on the daily chart, indicating increasing bearishness. However, it held the 23,000 mark, which remains a key level to watch. If the Nifty sustains above 23,000 over the next few days, it could signal a potential recovery. Conversely, a decisive fall below this level might trigger a deeper correction.
Satish Chandra Aluri, Lemonn Markets Desk
Technically, Nifty 50 is looking very weak with prospects of a further breakdown, although RSI indicates near term conditions look oversold. Expect 23,000 as key psychological support with next support around 22,800. Bank Nifty also fell sharply appearing oversold in the short term with RSI falling below 30.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
