Tech view: Nifty breaches 20 DEMA, strong resistance near 24,360. How to trade tomorrow
index breached its 20 DEMA in today's session, which indicates a downside breakout of the range movement of the last few sessions. The huge opening upside gap of 25th November has been filled and the Nifty closed around the gap support of 23,900 levels.
On the downside, the index will find immediate support near 23,800, followed by 23,560, which is the 200-Days exponential moving average (DEMA) support level. The index is still facing strong resistance near 24,350-24,360 levels. As long as the index persists below 24,360, traders should focus on booking profits on the bounce and wait for a fresh breakout, said Hrishikesh Yedve of Asit C. Mehta Investment Interrmediates.
In the open interest (OI) data, the highest OI on the call side for 5th November expiry was observed at 24,000 and 24,100 strike prices, while on the put side, the highest OI was at 23,800 strike price followed by 23,900.
What should traders do? Here’s what analysts said:
Jatin Gedia, Sharekhan
On the daily chart, we can observe that the consolidation of the last three trading sessions has broken down and filled the gap area formed on the 25th Nov between 23,950 – 24,150. Crucial retracement levels are placed at 23,935 – 23,807 which is likely to act as a strong support zone and potentially an uptrend resumption zone. Overall, the trend remains positive, and we expect the Nifty to resume its upmove towards 24,400.
Rupak De, LKP Securities
The Nifty slipped sharply during the day, falling below the crucial support level of 23,940. The sentiment
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