The short-term trend of Nifty remains weak and a decisive move below 24,000-23,900 could pull Nifty down to another support of 23,625. Immediate resistance is at 24,190, said Nagaraj Shetti of HDFC Securities.
Open Interest (OI) data showed the highest OI on the call side was at 24,300 and 24,500 strike prices while on the put side, it was concentrated at 23,500 strike price.
What should traders do? Here’s what analysts said:
Tejas Shah, Technical Research, JM Financial & BlinkXNifty is trading around a make or break support zone of 23,950-24,000 (50 Day EMA Area) and 300-400 points move can be expected on either side from the present level, preferably on the lower side. Support for the index is now seen at 23,950-24,000 and 23,600 levels. On the higher side, the immediate resistance zone for Nifty is at 24,150-200 levels and the next crucial resistance zone is at 24,350-400 levels. Overall, barring minor pop-ups the trend is likely to remain down.
Rupak De, LKP Securities
Nifty formed an Inverted Hammer pattern on the half-hourly chart, suggesting a possible bullish reversal of a smaller degree. Also, the index seems to have found support above Monday’s low. Now, two things might happen: one, the Nifty might recover towards 24,400-24,440 (21EMA), where selling pressure is likely to occur once again; or, it might fall straight away to 23,965 (50EMA)/23,650.
Jatin Gedia, Sharekhan
On the daily charts, we can observe that Nifty has faced resistance in the zone 24,350 – 24,400 where resistance in the form of the gap area formed on 5th Aug was placed. We believe that the weakness is likely to persist going ahead and incase of a pullback towards the resistance zone 24,300 – 24,350 it should be used as a selling opportunity. Crucial Fibonacci retracement level is placed at 23628 and 23280 is the 20-week moving average.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
