Tech View: Nifty gives no signs of reversal, support at 25,100. Here’s how to trade on Tuesday

economictimes.indiatimes.com:

Nifty ended Monday’s session with a gain of 43 points to form a small negative candle with a minor lower shadow on the daily chart.

The short-term trend of Nifty is intact. Though Nifty is placed at the hurdles of around 25,350 levels (1.382% Fibonacci extension), still there is no indication of any significant reversal pattern building at the highs. A decisive move only above 25,400 could open the next upside target of 25,800 levels. Immediate support is placed at 25,100, said Nagaraj Shetti of HDFC Securities.

Open Interest (OI) data shows the highest OI on the call side at the 25,500 and 25,700 strike prices, and on the put side at the 25,000 strike price. This data, coupled with the overbought conditions, hints at a possible correction in the September series, analysts said.

What should traders do? Here’s what analysts said:

Jatin Gedia, Technical Research Analyst at Sharekhan

Sectoral rotation is helping Nifty stay at elevated levels. We shall continue to ride the up move. On the upside, we expect Nifty to target levels of 25,500. On the downside, the crucial support base is placed at 25,210 – 25,120 where the key hourly moving averages are placed. We shall continue to ride the up move with a trailing stop loss mechanism.

Tejas Shah, Technical Research, JM Financial & BlinkX

The short-term moving averages are also below the price action and should continue to support the indices on any decline. Support for Nifty is now seen at 25,175-200 and 25,000-24,950 levels. On the higher side, immediate resistance